WTI Extends Losses Despite 8th Weekly Crude Draw In A Row

An ugly day in the energy complex saw WTI tumble to a $53 handle as US-China trade tensions were anything but calmed (despite the equity market's exuberance).

“We shouldn’t underestimate the potential impact of a full-blown trade war between the world’s two biggest economies,” said Bart Melek, head of global commodity strategy at TD Securities.

“This could very well mean we as a market significantly overestimated demand growth for oil and we could easily be in a surplus situation in 2020.”

API

  • Crude -3.43mm (-2.8mm exp)

  • Cushing -1.6mm

  • Gasoline -1.1mm (-1.2mm exp)

  • Distillates +1.2mm (+200k exp)

Crude stocks fell for the 8th week in a row, with a bigger than expected draw of 3.43mm barrels last week.

 

WTI accelerated its losses into the NYMEX close and hovered around $53.80 ahead of the API print and started to drift lower after the data hit...

It would appear trade uncertainty is trumping (pun intended) supply fears.