US Daily Oil Summary: Crude Stocks Fall

US Crude stocks declined further on the week, although Cushing stocks saw an increase, according to the EIA Weekly US Petroleum Summary.

• EIA Weekly US Petroleum Summary - w/w change week ending Sep 29: Crude stocks -2,224 vs Exp -171, Crude production 0, SPR stocks +300, Cushing stocks +132, Gasoline stocks +6,481 vs Exp +192, Implied mogas demand -605, Distillate stocks -1,269 vs Exp -156, Implied dist demand -157, Tot product stocks +6,862
• The latest weekly EIA oil data showed four-week average US gasoline demand fell to the lowest since mid-February and the lowest for this time of year since 1997.
• The greenback initially saw support, tipping the likes of EUR/USD and GBP/USD to new pullback lows of 1.0451 and 1.2037 respectively. This impact faded following the cash equity open on the continent, helping both pairs spill back into positive territory.
• US services PMI was 50.1 (vs 50.2 flash; 50.5 prior). The composite print was 50.2 (vs 50.1 flash; 50.2 prior).
• Softer than expected headline ADP employment data helps FOMC-dated OIS to levels seen at the end of last week, although pricing was already biased that way after the move off session cheaps in Tsys. The previously covered move lower in oil may have also helped the pre-data downtick.
• Yesterday evening, Rep Kevin McCarthy (R-CA), the now former Speaker of the House of Representatives, was ousted from his job in a historic ‘motion to vacate’ vote initiated by conservative Republican House Rep Matt Gaetz (R-FL).