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.”
Crude -3.43mm (-2.8mm exp)
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.