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WTI Extends Gains After Across The Board Inventory Draws

Tyler Durden's Photo
by Tyler Durden
Wednesday, Jul 28, 2021 - 10:37 AM

Oil prices rallied overnight as expectations (prompted by API's report last night) of inventory drawdowns dominated fears of a Delta-driven drop in demand.

"This price catalyst may inject some much-needed momentum into proceedings, especially after the API set a bullish tone," said Stephen Brennock of broker PVM, referring to the EIA report.

But, a rising number of coronavirus cases worldwide, despite vaccination programs, has limited the upside for oil and remains a concern.

API

  • Crude -4.728mm (-2.55mm exp)

  • Cushing -126k

  • Gasoline -6.226mm

  • Distillates -1.882mm

EIA

  • Crude -4.09mm (-2.55mm exp)

  • Cushing -1.268mm

  • Gasoline -2.25mm

  • Distillates -3.088mm

Official EIA data confirmed API's report that inventories drew down across all segments...

Source: Bloomberg

Gasoline demand was steady for the 3rd straight week after the July 4th spike...

Source: Bloomberg

US crude production continues to remain relatively well disciplined, but had started to accelerate amid high prices and high rig counts. Last week saw production slip back however (-200k b/d)...

Source: Bloomberg

WTI hovered right below $72 ahead of the EIA data and rallied back above it on the draws...

 

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