WTI is extending losses after DOE reported a bigger than expected crude (and Cushing) inventory build, after API reported the biggest crude build since Feb 2017 and OPEC cut its global demand estimates.
“The oil market can not shield itself from the rout in equity markets,” said Norbert Ruecker, head of macro and commodity research at Julius Baer Group Ltd.
Meanwhile, WCS settled at $26.17/bbl, lowest at close since August 2016, pushing Western Canada Select's discount to West Texas Intermediate crude to $52 a barrel on Tuesday, the widest on record.
That's because, apart from being a source of fuel, it's also rich in bitumen – a black residue used to build everything from roads to runways and roofs.
“The policy of boosting infrastructure investment has been bullish for bitumen,” said Li Haining, an analyst with industry consultant SCI99 in China's Shandong province.