Oil prices are rebounding this morning, after yesterday's growth-scare-driven tumble as investors wagered China’s demand revival would sustain the market even amid signs of rising US crude inventories (reported by API overnight).
“The reopening is proceeding sooner (by one quarter) and more rapidly than we originally expected,” JPMorgan analysts, including Natasha Kaneva, wrote in a note to clients.
“This opens a possibility that China is poised for a strong economic recovery that will gather steam in February, after the end of the Lunar New Year holiday.”
Will API prove to be right or is this 'noise' hanging over from the 'deep freeze' impact on refiners?
Crude +8.408mm (+4.8mm exp)
Cushing +3.646mm - biggest build since April 2020
Confirming API's report, the official data showed another huge crude build of 8.41mm barrels and a massive rise in stocks at Cushing...
US Crude production was flat at its cycle highs...
WTI was hovering at $80.50 ahead of the official data and bounced after the data...