Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

WTI Extends Gains On Big Crude Draw, Production Slump

Courtesy of ZeroHedge. View original post here.

Oil prices held on to gains overnight after the huge API-reported crude draw (but large ghasoline build) and more confidence in a possible US-China trade deal.

A confirmation of the API report in official government figures scheduled to be released Wednesday would “help us confirm an oil-price bottom,” said Phil Flynn, senior market analyst at Price Futures Group Inc., in a note to clients.

“If we hold the recent lows and build off of it, it is very possible that crude oil has set a low that won’t be tested for the rest of this year.

Bloomberg Intelligence's Senior Energy Analyst Vince Piazza warns:

"Energy investors seem to be paying attention to the wrong things. Escalating tensions in the Persian Gulf are supporting benchmarks, though the modest price boost relative to the risk of bottlenecks is surprising. Weaker petroleum demand should be the larger long-term concern, along with trade issues and resilient U.S. production. Modest aftereffects of storm system Barry still skew industry data."

API

  • Crude -10.961mm

  • Cushing -448k

  • Gasoline +4.436mm – biggest build since Jan

  • Distillates +1.42mm

DOE

  • Crude -10.835mm

  • Cushing -429k

  • Gasoline -226k

  • Distillates +613k

Confirming API's data, DOE reported a massive 10.8mm barrel inventory draw last week (and only marginal product inventory shifts). This is the 6th weekly crude draw in a row

US Crude production crashed down 700k last week but largely due to Gulf stoppages due to storm Barry…

WTI pushed up to the high of the day – above API print levels – ahead of the official DOE data, then spiked above yesterday's highs after the data confirmed API's big draw.

However, as Bloomberg notes, there are still signs of deteriorating global economic conditions. Prompt front-month Brent futures — the international benchmark for crude — traded at a discount to the second month for the first time since March.

The price structure, known as contango, typically indicates supplies are exceeding demand.


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!