WTI Extends Gains After Small Crude Build, SPR At 1983 Lows
Oil prices are hovering in the green after a roller-coaster overnight as Saudi Arabia slashed its crude prices, signaling tepid demand, and risk-off sentiment clipped broader markets.
Dollar strength this morning after solid labor market data is also not helping crude.
Crude inventory figures later Thursday will give a first insight into the impact of pre-Christmas cold weather on US stockpiles, after the American Petroleum Institute reported a build on Wednesday.
Crude +1.69mm (+1.1mm exp)
US crude stockpiles rose for a second straight week (though built less than API reported) while gasoline inventories drew down for a second week...
The Strategic Petroleum Reserve saw yet another drain last week (-2.748mm), dragging it to its lowest level since Nov 1983...
US Crude production inched higher last week but remains around the same as it has for six months...
Refinery Utilization plunged last week as the nationwide winter storm shut down ops...
US weekly gasoline product supplied, a proxy for demand, fell by the most since March, 2020. Distillates demand also fell to the lowest level since May 2020.
WTI was trading around $73.50 ahead of the official data and rallied after...
However, a deepening contango in front-month oil spreads reflects the dour near-term view...
Finally, we note that Saudi Arabia kept oil exports steady last month as it continued to implement an OPEC+ agreement aimed at stabilizing world crude markets, according to an official from the kingdom.