The U.S. Energy Information Administration (EIA) revealed on Wednesday that crude inventories fell by 0.745 million barrels in the week ended May 8. Economists had forecast a surge of 4.147 million barrels.

At the same time, gasoline stocks declined by 3.513 million barrels, while analysts had expected a drop of 2.216 million barrels. Distillate stocks climbed by 3.511 million barrels, while analysts had forecast an increase of 2.857 million barrels.

Meanwhile, oil production in the U.S. decreased by 300,000 barrels a day to 11.300 million barrels a day.

U.S. crude oil imports averaged 5.4 million barrels per day last week, down by 321,000 barrels per day from the previous week.

• Non-OPEC supply forecast to fall 3.50 million bpd vs. its previous forecast of 1.5 million bpd drop
• All producers outside of OPEC has so far announced curbs of 3.6 million bpd
• Says worst demand contraction in major centers is expected in Q2 of 2020
• Supply curbs are already started showing positive response, with rebalancing expected to pick up faster in coming quarters
• OPEC oil output rose by 1.80 million bpd in April to 30.41 million bpd
• Saudi Arabia boosted oil output in April by 2.274 million bpd to a record of 12.007 million bpd

FXStreet reports that analysts at Credit Suisse expect more gains to come as long as Brent Crude Oil trades above $27.10.

“With the market remaining above $27.10 we look for further gains with resistance seen next at $36.29/40, which we look to cap to define the top of a broad long-term range. Above $36.40 though would complete an important base.”

“Support at $23.22 now ideally holds to keep the immediate risk higher. Only back below $18.73 though would warn of a retest of $16.65/14.53”.

• Especially, growth in oil demand and ease in concerns about storage limits, as countries across the globe are coming out of lockdowns
  
• We remain firmly committed to achieving market stability
• Confident that OPEC+ partners are aligned with our goals

Gold: Threat of a consolidation phase is growing – Credit Suisse

FXStreet reports that analysts at Credit Suisse note that gold continues to struggle to hold its move above its ‘measured base objective’ at $1700/05 and upside momentum is waning near-term and the threat of a consolidation phase is growing.

“Support at $1660 needs to hold to see this averted and to keep the immediate risk higher still, with resistance at $1796/1803 next.” 

“Below $1660 would signal a more protracted consolidation phase, with support seen initially at $1638, then what we expect to be better support at $1569/65.”