WTI Spikes Near One-Month Highs After Big Crude, Product Inventory Draws

Oil prices have rollercoastered back into the green (back bear one-month highs) this morning after weakness overnight (which could have been driven by reports out of China's Xi'an province of COVID-based driving bans).

“Crude oil trades near a one-month high after API’s weekly stock report,” said Ole Hansen, head of commodities strategy at Saxo Bank A/S. The market is “currently betting the omicron virus, despite a global surge, will not derail robust global demand.”

So the bullare hoping the official data backs API, and Biden is hoping it doesn't

API

• Crude -3.09mm (-3.233mm exp)

• Cushing +1.594mm

• Gasoline -319k

• Distillates -716k

DOE

• Crude -3.576mm

• Cushing +1.055mm

• Gasoline -1.459mm

• Distillates -1.726mm

The official DOE data confirmed API's sizable crude draw and showed bigger than expected product draws while Cushing stocks rose for the 7th straight week...

Source: Bloomberg

Crude production rose to the highest since May 2020...

Source: Bloomberg

WTI hovered around $75.80 ahead of the print and spiked almost $1 after the big draws...

Crude is heading for its biggest annual gain in more than a decade after global consumption recovered from the pandemic with the roll-out of vaccines.