WTI rallied once again today but was unable (again) to break above $50 helped reflexively by stocks resurgence.
“Saudi Arabia will continue to be the decisive factor for the markets this year, just as they were last year,” said Eugen Weinberg, head of commodities research at Commerzbank AG in Frankfurt.
“They can be very convincing when they choose to be. And so we see the potential for Brent crude to go to $70 a barrel over the course of the year.”
But overall price action has been positive into today’s API inventory data.
“There’s a confluence of factors helping — a big driver is progress in trade talks and hopes that global growth will be supported,” said Stephen Innes, head of trading for Asia Pacific at Oanda Corp.
“Fed’s easier stance and OPEC’s commitment to cut production, as well as expectations that inventories should drop are lending a hand to this positive investor sentiment.”
Massive surges in gasoline and distillate inventories with a fractional crude build last week were dominated by API data for the last week showing a bigger than expected crude draw (and we suspect catch up builds in API data after DOE’s data)…
The glut in US crude inventories remains relatively high however…
WTI slipped notably into the API print and then rallied back on the bigger than expected crude draw…