WTI ANALYSIS 17-MAR-21
A number of EU countries have suspended the use of the coronavirus vaccine, again sharply increased fears of demand, which provided a drop in oil markets. Market participants reduced activity before the FOMC meeting. If the regulator is unable to influence the market's expectations for the rising treasury bond yield, the current value of which is 1.6, then the dollar will get a new boost, and commodities will fall under a new wave of pressure.
At the same time, the demand for gasoline remains high and will be supported by the receipt of assistance to each US citizen in the amount of $1,400. U.S. crude oil inventories last week stood at 456 million barrels, which means that for the first time this year, the total volume fell below the 5-year average. This rapid drop in inventories is largely reflected in the active reduction in gasoline inventories, which have fallen by 25.5 million barrels over the past two weeks due to the cold snap in the United States. And refineries continued to face difficulties getting back to work. The US refinery utilization rate is still at a low 69%. With $1.9 trillion in fiscal stimulus, energy demand is likely to continue to grow.