FAST FIVE: WTI Plunges To $50 Handle After Crude Stocks Hit 2-Year Highs

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Update: It appears the unexpected surge in crude inventories (glut) is trumping any claims from OPEC (or more specifically the Saudis) that supply can be tamped down to match lower demand concerns.

“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.

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