Crude edged higher as OPEC showed increased determination to curb production and tighten markets ahead of inventory data tonight, but extended gains after API reported a bigger than expected crude draw (9th in a row).
- Crude -5.121mm (-3.15mm exp)
- Cushing -3.936mm (2.5mm exp)
- Gasoline +1.782mm
- Distillates +609k
This is the 9th straight week of crude draws and gasoline builds...
There could be some weather-impact in this data as Bloomberg notes that at least two Gulf Coast refineries aren’t producing product because of issues related to sub-freezing temperatures sweeping across the South while multiple other sites are having cold-related upsets.
“The market continues to take support from signs that OPEC and Russia’s compliance with their production cuts is really high and it doesn’t seem that there are any worries that there is cheating going on yet,” Gene McGillian, a market research manager at Tradition Energy in Stamford, Connecticut, said by telephone.
Prices were higher on the day but limped into the API data as the Dollar spiked but resumed climbing after the bigger than expected crude draw.
“WTI is continuing to outperform Brent as the reductions at Cushing have been really pronounced,” Thomas Finlon, director of Energy Analytics Group LLC in Wellington, Florida, said by telephone.