WTI Barely Bounces After Surprise Crude Draw

After the collapse in the energy complex today amid concern OPEC’s plans to cut production won’t be enough to stem a surge in stockpiles, all eyes are on API's report to see if crude inventories rose for the ninth week in a row...

12-month lows for WTI...

And Oil vol has reached its highest since Feb 2016...

“I think you’re going to see a risk-off type of market," Tariq Zahir, a New York-based commodity fund manager at Tyche Capital Advisors LLC, said in an interview. “It wouldn’t be surprising to see new lows being printed on oil" if U.S. inventories jump.

API

  • Crude -1.545mm

  • Cushing +398k - 9th week in a row

  • Gasoline +706k

  • Distillates -1.823mm - 9th week in a row

After last week's huge DOE-reported crude inventory build, API has some catching up to do.. but it didn't - API reported a draw of 1.545mm barrels, ending the streak.

 

WTI was hovering around $53.20 before the API print hit and kneejerked very modestly higher...

 

If anyone needs some hope - here's Andy Hall:

“The balance of risk at this point favors some sort of recovery,” the trader once known as ‘God’ in the industry due to his lucrative trades, said in a phone interview Friday.

“It’s quite likely OPEC will come through with some sort of cut in the next month or two.”

Hall shot to fame during the financial crisis when it was revealed Citigroup Inc. owed him a $100 million payday. His career stretches back to the 1970s and includes stints at BP Plc and legendary trading house Phibro LLC. He closed his flagship Astenbeck Master Commodities Fund II after it lost almost 30 percent through June of 2017, Bloomberg News reported last year.