Oil prices are lower this morning following API’s reported build at Cushing (confirming Genscape’s report) and not sustainably helped by stronger than expected US GDP data (perhaps not enough to counter the deteriorating global economy weakened by the trade war which has driven a 16% slump in crude since late April).
Crude -708k (+2.5mm exp)
Gasoline -4.7mm (-2.5mm exp)
Distillates -1.61mm (-2.4mm exp)
Crude +5.70mm (+2.5mm exp)
Gasoline -3.037mm (-2.5mm exp)
Distillates -1.032mm (-2.4mm exp)
Shrugging off last week’s surprise draw, DOE data completely reversed API’s, reporting a 5.7mm barrel build (and a 4th straight week of builds at Cushing). Product inventories dropped for the 5th week in a row…
U.S. refineries return to duty as maintenance season winds downs with crude output elevated in a complacent market, says Vince Piazza, senior energy analyst at Bloomberg Intelligence.
US crude production remains at record highs as rig counts collapse…
“WTI has come under some renewed pressure this morning,” ING Bank analysts Warren Patterson and Wenyu Yao wrote in a report.
“This follows the API reporting that U.S. crude-oil inventories in Cushing increased. Stocks at the WTI delivery hub have been trending higher since late September, which has put pressure on the prompt WTI time spreads.”
Into the print, WTI traded around $55.20 (having bounced earlier from below $54) and slid on the big surprise build…