WTI turned lower today as traders weighed output cuts from OPEC and its partners against expectations for rising U.S. crude inventories and a slowing US services economy.
"My guess would be that some of the refiners may cut back on some of their runs so crude supply ought to build a bit" said Stewart Glickman, an energy equity analyst at CFRA Research. "They’re probably limited in their ability to substitute away from Venezuelan heavy crude"
Crude +2.514mm (+1.5mm exp)
Cushing +889k (+400k exp)
Gasoline +1.731mm (+1.5mm exp)
Distillates +1.141mm (-2mm exp)
A small crude build last week (and product draws) surprised traders and tonight's API saw builds across all cohorts (with crude inventories rising more than expected)
WTI traded lower all afternoon, holding around $53.70 ahead of the API print and barely reacted to the builds...
“People are slowly getting nervous about the economy," said Michael Lynch, president of Strategic Energy and Economic Research in Winchester, Massachusetts. “Everyone is worried that prices will be weaker than last year."