FAST FIVE: WTI Extends Losses After Crude Inventories Hit Highest Since July 2017
Oil prices extended their losses overnight after API surprised with notable builds in crude and gasoline (and at Cushing) – sending WTI to a $51 handle – and not helped as US-China tensions show no sign of abatement.
“US crude stocks have been rising almost uninterrupted since mid-March,” said Bjarne Schieldrop, Oslo-based chief commodities analyst at SEB AB.
API Crude +4.85mm (-1.0mm exp) Cushing +2.4mm (+1.97mm exp) Gasoline +830k (+700k exp) Distillates -3.5mm (+1.1mm exp) DOE Crude +2.21mm (-1.0mm exp) Cushing +2.096mm (+1.97mm exp) Gasoline +764k (+700k exp) Distillates -1.0mm (+1.1mm exp) After last week's biggest US aggregate energy inventory build in history, hope was for some draws this week but once again that hope was dashed as EIA reported builds in Crude and Gasoline stocks (and at Cushing).
Finally, Bloomberg Intelligence's Senior Energy Analyst Vince Piazza sums up the current energy complex situation: Potentially slowing global demand and trade disputes underpins our reserved oil-price view.
Deepening output curbs is the right strategy for OPEC and its partners, yet Russia's commitment is in question.