Oil prices have accelerated their gains overnight to 4-week highs after API reported a bigger-than-expected crude draw and mid-east tensions remain high.
“This is the market’s reaction to the unexpectedly pronounced fall in U.S. crude-oil stocks,” said Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt.
“Apart from crude-oil stock trends, the focus here is also likely to be on gasoline demand” as the northern hemisphere moves into the peak summer driving season.
Crude -7.55mm (-2.9mm exp) - biggest draw since March
Crude -12.778mm(-2.9mm exp) = biggest draw since Sept 2016
Following last week's bigger-than-expected crude draw and API overnight, DOE expectations were for a notable crude draw (with a whisper number of 3.2mm), but no one expected the massive 12.78mm collapse in inventories - the biggest since Sept 2016. But there were draws across the board...
As the US oil rig count extends its declines, it appears - perhaps - that US crude production has peaked (for now)...
Bloomberg's Michael Jeffers notes that U.S. weekly crude exports hit a new high, total crude and products exports are also at a new high, and the U.S. was a net petroleum exporter by 676,000 barrels last week.
WTI spiked immediately on the huge EIA data, extending the overnight API gains...
Testing the four week highs...
Notably, WTI has significantly outperformed Brent in the last few weeks as the WTI-Brent spread compresses on geopolitical tensions...