Oil closed at a 3-year high heading into tonight's inventory data, but WTI/RBOB faded after API reported a surprise crude build (after 9 straight weekly draws). Gasoline inventories rose for the 11th week as Cushing stores fell again.
Underpinning the price rally were also assurances from Russian and Saudi Arabian oil chiefs that a historic production accord by the world’s largest producers will endure.
The comments from Saudi Arabia and Russia quell investors’ “concerns about OPEC discipline deteriorating. That should be welcome news,” Paul Crovo, a Philadelphia-based oil and equity analyst at PNC Capital Advisors LLC, said by telephone. “Inventories continue to go down. That’s all good news.”
- Crude +4.755mm (-2mm exp) - biggest build since September
- Cushing -3.572mm(-2.2mm exp)
- Gasoline +4.117mm (+2.2mm exp) - 11th weekly draw in a row
- Distillates -1.28mm (-1.1mm exp)
The streak of crude draws ends at 9... If this data holds up for DOE tomorrow, this will be the 11th weekly gasoline build in a row...
WTI/RBOB prices were exuberantly hopeful heading into API data but faded after the surprise crude build...
“You are seeing a rebalancing of the oil market,” Bart Melek, head of global commodity strategy at TD Securities in Toronto, said by telephone. “We’ve had outsized inventory declines for the last little while.”
Is that over now?