WTI Extends Losses As Crude Production Nears Pre-COVID Highs, SPR Build
Oil prices are modestly lower this morning, having given up overnight gains amid weakish US data which followed dismal China data.
"We continue to believe oil demand headwinds will outweigh supply cuts in the near term," warned Bloomberg's Joseph Richter
API
Crude -6.195mm (-1.7mm exp)
Cushing -1.00mm
Gasoline +700k (-1.2mm exp)
Distillates -800k (-100k exp)
DOE
Crude -5.96mm (-1.7mm exp)
Cushing -837k
Gasoline -262k (-1.2mm exp)
Distillates +296k (-100k exp)
The official DOE data confirmed API's reporting of a major Crude inventory draw last week (down around 6mm barrels - notably more than expected). Stocks at the Cushing hub fell for the 6th of the last 7 weeks...
Source: Bloomberg
US Crude inventories are at their lowest since January...
Source: Bloomberg
For the second week in a row, the Biden administration 'refilled' the SPR (adding a mere 600k barrels)...
Source: Bloomberg
US Crude production surged again last week - despite the decline in the rig count - up to near pre-COVID levels...
Source: Bloomberg
WTI was hovering around $80.80 ahead of the official data and extended losses after the print...
Finally, we note that retail gas (pump-prices) are at 10-month highs, and set to go further given where wholesale gasoline and crude prices are...
Get back to work Mr.Biden.
