Oil demand remains soft despite inventory surprise

Oil price jumped today as oil and gasoline inventory increased less than expected. Meanwhile, distillates inventory showed a larger-than-expected decline.

However, there is no evidence that demand for oil products is turning the corner after months of softness

From Wall Street Journal

Demand indications, that is products supplied to wholesalers, are soft, showing the eighth straight year-on-year decline for gasoline, at minus 2.3 percent in the latest week, and the first year-on-year decline for distillates, at minus 2.9 percent, since February and the steepest decline in more than one year

From the inventory chart, it is too early to infer that the bullishness in oil price will resume immediately.