Crude prices remain higher this morning ahead of the official inventory data, but have pared gains from overnight anxiety related to Putin's escalating war rhetoric, as traders focused more on the impact of The Fed.
“Macro markets are definitely the elephant in the room right now with rates and the dollar really keeping a lid on crude rallies,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Management.
Adding to bearish sentiment, China issued a giant new quota to export refined fuels, according to a local industry consultant, which could weigh on oil product markets.
Confirming API's data, the official inventory data showed crude stocks rising for the 3rd straight week and inventory builds across the entire complex...
The 1.14 million-barrel build in commercial crude stockpiles was more than offset by the withdrawal of 6.9 million barrels from the Strategic Petroleum Reserve.
The net result was a nationwide crude draw of 5.76 million barrels in the week to Sept. 16.
US crude production was flat week-over-week as rig counts continue to stagnate.,..
WTI slipped to the days lows (from $84.50 prior) after the inventory builds...
Finally, we note that after 99 straight down days, and despite a record 3-week drain from the SPR, US gas prices at the pump rose yesterday...
Interesting timing as Biden is about to end his unprecedented releases from the SPR (which we now see an increasing number of Dems demanding be extended)...
And with WTI Crude and Wholesale Gasoline prices pulling retail prices higher...