WTI Extends Losses After Big Surprise Crude Build

Crude prices fell to the lowest level in almost a week as China warned of “serious challenges” to the global economy and the U.S. government shutdown cast a pall over growth.

“You still have the same old things hanging over us, particularly the question of a trade deal between the U.S. and China," said  Michael Hiley, head of OTC energy trading at LPS Futures in New York.

API

  • Crude +6.551mm (-500k exp)

  • Cushing +359k

  • Gasoline +3.635mm

  • Distillates +2.573mm

After three weeks of dramatic product builds (and modest crude draws), it appears a record high production finally caught up with demand as API reported a major surprise crude build of 6.551mm barrels.

WTI was hovering around $52.60 ahead of the API data and extended the day's losses on the print...

Tomorrow at 11ET will see the DOE report.