Oil prices plunged most in seven weeks today as US-China talks appeared to stall.
“We are going into this week with another storage build expected in the EIA’s report,” said Bob Yawger, director of futures division at Mizuho Securities USA.
“The trade deal has soured and the vibe on the deal has turned a bit negative and that will affect demand too.”
Crude +5.954mm (+1.5mm exp)
After last week's mixed bag (API reporting a draw and DOE reporting a build), API appears to be playing catch up with a much bigger than expected build...
U.S. crude stockpiles are at the highest level in four months. If official government data confirms the forecast in inventories on Wednesday, it would be the fourth straight weekly advance.
WTI broke down from its recent range today...
And hovered around $55.30 ahead of the API print and limed modestly lower after the bigger than expected build - holding the losses for the day...
Finally, we note that Brent crude tumbled 2.5% to close at $60.91 a barrel on Tuesday. The slide to the lowest level this month took the global benchmark below its 50- and 100-day moving average, which could lead to further selling.