FAST FIVE: WTI Extends Losses After Surprise Crude Inventory Build
WTI Extends Losses After Surprise Crude Inventory Build Oil prices traded down today on the back of confidence Saudi comments about the pace of recovery from the attack on its largest refinery.
“Thus the company will be able to meet all its commitments to customers this month by drawing on its crude oil reserves.” While all eyes will remain on Saudi production/supply, we suspect some marginal moves on the heels of inventory data (especially in light of potential storm disruptions).
The market will be monitoring for more declines at Cushing, Okla., and overall US crude inventory decreases after the startup of new Permian pipelines, says John Kilduff, partner at Again Capital API Crude +592k (-2.5mm exp) Cushing -846k Gasoline +1.6mm (-500k exp) Distillates +2.00mm (+500k exp) After four straight weeks of draws, US Crude inventories showed a surprise 592k barrel build last week (and builds for gasoline and distillates), pressuring WTI prices even lower on the day.
WTI hovered around $59 ahead of the API print and extended losses after the surprise build.