WTI Extends Gains After API Reports Surprise Crude Draw
Oil prices rose modestly on a low volume, low liquidity day helped by the tumble in the dollar that The BoJ enabled.
Ongoing hopes for China demand (post Zero-COVID policies) helped prices and continued supply disruptions in the US are also supporting oil. TC Energy pushed back its targeted restart for the Keystone pipeline by a week and is now aiming for December 28 or 29.
Crude -3.069mm (-167k exp)
After last week's huge crude build (and builds across the board), all eyes are on this week's data for any signs that it was a one-off, or that a sudden demand drop has hit the US economy. API reported a 3.069mm barrel Crude draw (bigger than the expected small draw) but builds at Cushing and in products...
WTI was hovering around $76 ahead of the API print and extended gains modestly after...
"After an extended bout of long liquidation, and with positioning much more balanced, bullish sentiment is creeping back into oil traders' purview, primarily based on China's reversal of its zero-COVID policy," said Stephen Innes, managing director of SPI Asset Management, in emailed comments.
"And despite all the economic fear and recession hype, oil continues to find buyers on dips, proving itself as one of the most needful commodities in the world."
Crude is also finding underlying support from the Biden administration's plan, announced Friday, to buy 3 million barrels of crude in February to replenish the Strategic Petroleum Reserve.