WTI continued to drift lower today into the inventory data amid concern that “emerging-market contagion is going to suppress economic growth and limit demand,” said Gene McGillian, manager of market research at Tradition Energy.
API reported a third weekly draw in a row for Crude inventories but WTI extended the day's losses as the 1.17mm draw was smaller than the expected 2.99mm draw (and stocks rose at Cushing and for gasoline and distillates).
Crude -1.17mm (-2.9mm exp)
Cushing +613k (+600k exp)
“The market was clearly overheated on storm concerns,” said Thomas Finlon, director of Energy Analytics Group LLC in Wellington, Florida. “The real sharp run-up yesterday was quite an overreaction.”
WTI sat right around $69 ahead of the API data but extended the day's losses
More than 9 percent of U.S. Gulf of Mexico oil output remained shut down on Wednesday as Gordon weakened and drifted northward over Mississippi.
Meanwhile the Permian pipeline discounts continue to collapse to record highs...