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 Sinks After Big Gasoline Build Sparks Demand Doubts

Courtesy of ZeroHedge View original post here.

Oil prices are higher overnight, as Pfizer vaccine headlines offer hope for a return to normal demand (shrugging off last night’s bearish API inventory report) and signs of robust consumption in Asia.

“It’s going to help support petroleum demand when the vaccine becomes more readily available, but widespread distribution isn’t really expected until next year,” said Andrew Lebow, senior partner at Commodity Research Group.

“But nevertheless, the news definitely adds to sentiment and helps support the market.”

API

  • Crude +4.174mm (+100k exp)

  • Cushing +176k

  • Gasoline +256k (+300k exp)

  • Distillates -5.024mm (-1.8mm exp)

DOE

  • Crude +769k (+100k exp, +1.36mm whisper)

  • Cushing +1.2mm

  • Gasoline +2.611mm (+300k exp) – biggest build since May 2020

  • Distillates -5.216mm (-1.8mm exp)

After last night’s surprising (and large) crude build reported by API, whisper numbers rose into the official print which came at +769k (considerably less than API). However, Gasoline stocks jumped more than expected. This is the 9th week in a row of Distillates draws.

Source: Bloomberg

The surprisingly large build in gasoline stocks may be here to stay in the short-run as US states discourage Thanksgiving travel, the biggest driving holiday of the year.

Cushing inventories are now at a seasonal five-year high after last week’s 1.2 million barrel build…

Source: Bloomberg

US crude production continues to be noisy as storm shut-ins come and go, but we are back to ‘normal’-ish…

Source: Bloomberg

As Bloomberg’s Anastacia Dialynas notes, a big underlying question is what is the larger trend for production? EIA anticipates November production will grow and average 11.25 million barrels per day, according to the outlook it published last week. However, low activity in the shale patch will soon translate into output declines, which would pull overall production numbers down.

WTI traded just above $42 ahead of the official inventory data and slipped below after the bigger than expected gasoline build…

“Risk assets and oil will reset higher, not because current and short-term conditions will change, but because the expectations around the path to economic and oil demand recovery will change,” said Harry Tchilinguirian, head of commodity-markets strategy at BNP Paribas SA.


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!