During the next three months, various analysts expect crude oil inventory drawdowns to increase, providing support to crude oil prices. However, post-September, inventory build-up is likely to accelerate, putting a cap on the oil rally. With expectations of restoration of Canadian supply, supply outages are likely to reduce. Oil production is likely to be supported by high oil prices while demand increase is already priced in. The main variable that will affect prices is the crude oil inventory, something which traders are likely to follow closely. (Click to enlarge) The chart above shows the seasonal crude oil inventory drawdowns from June to September. Even last year, crude oil drawdowns were large, yet the surplus continued to inch higher, which eventually led to a drop in crude prices. The current season starts with crude oil inventories at 531.5 million barrels as of 10 June, according to the […]