OPEC & EIA nugget: A day of reckoning ahead for Oil
The weekly EIA data is out at 11.00 am ET after last week’s data sparked a massive sell-off in oil markets.
The implied Gasoline demand dropped 12-13% also in seasonally adjusted terms after a cocktail of decreased production and increased inventories of retail gasoline.
The actual road congestion is up >5% since the early parts of October, meaning that demand is likely up (at least) as much before considering the technicalities of the EIA report that could have led to a flawed low number.
Expect the EIA data to rebound MATERIALLY today and oil markets will likely follow suit.
Chart 1: Big gap opened between EIA data and actual road congestion