The recent trend of inventory draws (in crude and products) has supported higher Brent and WTI prices (the latter testing $48 today) despite surging production. API reported more of the same with a much larger than expected draw (-10.2mm vs -3mm exp), sending WTI above $48. All was not perfect in the report however as gasoline saw an unexpected build.
- Crude -10.2mm (-3mm exp) - biggest draw since Sept 2016
- Cushing -2.568mm (-1mm exp)
- Gasoline +1.9mm (-1.8mm exp)
- Distillates -111k
Gasoline surprised with an unexpected build in inventories but the massive crude draw (largest since Sept 2016) and a reduction in stocks at Cushing helped send crude proices higher...
WTI traded around $48 into the API print - having ripped higher the last two days after Saudi 'whatever it takes' comments - and blew through $48 on the API print...
“They have chased the bears back into the woods. Sentiment in the market is mildly bullish,” James Williams, an economist at London, Arkansas-based energy-research firm WTRG Economics,