WTI rebounded strongly intraday, after testing down to cycle lows near $50 during the morning, pushing $52 ahead of the API report that was expected to show a 10th weekly crude build in a row.
“In this trading environment where all the moves that we see are exacerbated, the idea that the oil market has found a bottom doesn’t seem to be taking hold yet," said Gene McGillian, senior analyst and broker at Tradition Energy in Stamford, Connecticut.
Crude +3.453mm (+700k exp)
Last week's tiny 116k barrel draw at Cushing broke its build streak (no up 10 of 11 weeks) but Crude saw its 10th consecutive weekly build (and Distillates broke the 9 week draw streak with a 1.185m build)...
WTI was drifting higher ahead of the API print and kneejerked above $52 after the print...
“Oil traders are very nervous right now,” said Phil Flynn, senior market analyst at Price Futures Group.
“The market’s been beat up so bad and the big question is can we hold $50? We are definitely in a downtrend.”
With G20 and OPEC meetings imminent, is it any surprise that oil protection is bid...