FXStreet reports that analysts at TD Securities note that despite holding strong yesterday, crude oil remains in the dumps amid a double-edged supply and demand shock, while some optimism comes from OPEC and Russia.

“Headlines regarding the price war will keep volatility extremely elevated, while increased social distancing and diminished travel globally will continue to weigh on the demand front.” 

“News that Novak and Russia are keeping in contact with OPEC, and will attend the March committee meeting, is adding a sense of optimism that OPEC+ will eventually return to new output cuts in the future, but the Saudi supertanker loaded with crude is the more immediate worry for markets as inventories are set to swell.”

The U.S. Energy Information Administration (EIA) revealed on Wednesday that crude inventories climbed by 7.664 million barrels in the week ended March 6. Economists had forecast an advance of 2.266 million barrels.

At the same time, gasoline stocks declined by 5.048 million barrels, while analysts had expected a drop of 2.482 million barrels. Distillate stocks fell by 6.404 million barrels, while analysts had forecast a decrease of 1.911 million barrels.

Meanwhile, oil production in the U.S. reduced by 100,000 barrels a day to 13.0000 million barrels a day.

U.S. crude oil imports averaged 6.4 million barrels per day last week, up by 174,000 thousand barrels per day from the previous week.