- Oil is down $1.86 to $85.51, reversing gains from yesterday
- The US dollar index is trading around 106.75, the highest level since earlier this month, ahead of the Q3 GDP advanced release today
- Yesterday, the EIA reported a storage build of 1.4 MMBbl, which was higher than the market expected and put US crude inventories 5% below the five-year average
- Global oil inventories hit multi-year low (BBG)
- Commercial and strategic reserves have fallen to the lowest level in years as OPEC reduces supply
- According to Kpler, global inventories have fallen to 3.31 billion barrels, which is the lowest level since they began tracking inventories in 2017
- In the US, inventories at the Cushing storage facility fell to a nine-year low earlier this month
- Rystad Energy said the main drivers behind the decline in crude stocks are the impact of the Saudi cuts and higher interest rates, reducing the incentive to hold oil in storage