Despite a slow start yesterday morning, oil prices closed the session a few cents higher than Monday’s close, putting prices at the top of its recent $63-$66 range. Today, prices are trading sideways/slightly lower, recovering from the rally over the past two days.
The API released their weekly inventory data, which echoed the market’s expectation of across-the-board inventory draws. Crude inventories reportedly fell 0.4 million barrels, a bit below expected levels. Markets will be watching the EIA’s data later today to confirm inventory directions. The data is important on two levels – 1) it’s the second report from the Colonial cyberattack, and 2) as demand recovers, markets are watching to see how supply/demand balances perform.
Speaking of the Colonial cyberattack, the White House is moving forward with mandatory cybersecurity reporting requirements for pipelines, the first time those companies have been mandated to report cyberattacks to the federal government. Further mandates are expected in the future to secure America’s critical infrastructure against cyberattacks. The TSA, the agency tasked with pipeline protection, will lay out guidelines for how pipeline companies protect their critical systems and what to do during an attack.