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Friday, March 29, 2024

WTI Crude Jumps Above $44 After Smaller Than Expected Cushing Build

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Notable weakness in oil prices amid growth/demand concerns today, following Genscape’s (+821k) Cushing’s big build report yesterday, and expectations for continued builds in overall crude and Cushing levels set up trades ahead of API’s report with oil below $44 heading in. An overall crude inventory rise of 1.3mm barrels (almost double the 750k expectation) was not enough to trump a smaller than expected Cushing build of just 382k barrels (1.3m exp) which seemed to please the machines which ripped WTI back above $44 instantly.

As Bloomberg reports, Crude inventories +1.3m, gasoline -1.2m, distillates -2.6m, according to person familiar and reports on Twitter. Cushing crude inventories +382k

API:

  • Crude +1.265m (+750k exp)
  • Cushing +382k (+1.3m exp.. Genscape +821k)
  • Gasoline -1.17m
  • Distillates -2.6m

Cushing’s lower than expected build is the biggest driver for now…

And the reaction in crude, after jumping higher after the NYMEX Close…

“The price of crude got ahead of itself,” Michael Corcelli, chief investment officer of hedge fund Alexander Alternative Capital in Miami, says. “The supply issue is definitely there. That’s not something that is going to change. Now people are starting to get worried about demand.”

Charts: Bloomberg

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