The following is an excerpt from Julian Lee | July 3, 2016 | Bloomberg.com |
Could it be that the U.S. demand that's helped drive a near doubling of oil prices since mid-February was illusory? That may be a reasonable conclusion to draw from the latest data published by the country's Department of Energy.
The DoE, through the Energy Information Administration, produces two sets of U.S. demand data that drive sentiment and influence trading. The first shows monthly figures. They're two months out of date, but they give the most accurate assessment of what's going on in the world's largest oil-consuming country.
The second set of numbers come out each Wednesday, giving preliminary estimates for the previous week. For crude markets these weekly figures -- though less reliable -- are arguably more important, largely because they're bang up to date.It's the discrepancy between the two sets of data that gives cause for concern.
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