9.3 C
New York
Thursday, March 28, 2024

WTI Extends Losses After API Reports Large Unexpected Crude Build

Despite ongoing dollar weakness, oil prices tumbled for a second straight day as China Zero-COVID easing hopes faded and the crypto meltdown today appeared to hit ewvery asset class for a period…

“The lack of a concrete timeline or any real details about plans to reopen the Chinese economy and move away from the still very strict and economically crippling restrictions weighed on the energy market into the afternoon,” wrote analysts at Sevens Report Research.

Of course, traders are also waiting for any signals on supply/demand tomorrow with tonight’s API report offering some early insight…

API

  • Crude +5.618mm (-700k exp)

  • Cushing -1.848mm – biggest draw since May

  • Gasoline +2.553mm (-1.2mm exp)

  • Distillates -1.773mm (-900k exp)

Expectations were for a small crude draw on top of last week’s surprisingly large draw but instead API reported a significant build of 5.618mm barrels. Additionally Cushing saw a major draw and Distillates stocks dropped again…

Source: Bloomberg

WTI was holding just above $89 ahead of the API data and extended losses below the low of the day after the surprise build…

“Inventory numbers should be in focus this week as the U.S. will aim to extend last week’s small increase to distillate stocks, which remain persistently low,” said Robbie Fraser, manager, global research and analytics at Schneider Electric, in a daily note.

“Strong export demand has kept diesel in short supply, and some additional inventories would be welcomed ahead of a heating season that could carve out more room for diesel as global natural gas supply remains tight,” said Fraser.

Separately, in a monthly report released Tuesday, the EIA raised its 2022 and 2023 price forecast for heating oil and diesel.

It said U.S. supplies of the fuels known as distillates, which are primarily consumer as diesel and heating oil, finished the month of October at their lowest level in any October since 1951.

This post was originally published on this site

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments

Stay Connected

157,452FansLike
396,312FollowersFollow
2,280SubscribersSubscribe

Latest Articles

0
Would love your thoughts, please comment.x
()
x