FAST FIVE: WTI Erases Tariff-Delay Gains, Crude Inventories Show Surprise Build
Oil prices have plunged overnight, erasing the spike gains from yesterday's trade-tariff-delay headlines thanks to API reporting a surprise crude (and gasoline) build as well as ugly German GDP data.
“Yesterday was an eye opener on how much global growth fear hides in oil prices,” said Norbert Ruecker, head of economics at Julius Baer Group Ltd.
WTI has roundtripped into the DOE data as API triggered the start of a reversal that erased all of the tariff delay gains.
and rallied modestly on the print (presumably on a smaller than API build and draws in gasoline) “It is difficult for any meaningful rally in this risk-off environment and the potential increase in US inventories adds further bearishness,” said Howie Lee, a Singapore-based economist at Oversea-Chinese Banking Corp.
“We have been here before — the on-off trade talks — and everyone remains skeptical.”.