FAST FIVE: WTI Dips After Surprise Crude Build
“The broader energy market is likely falling back into its familiar range with WTI trading between $52 and $63” a barrel, analysts at Sevens Report Research wrote in their latest newsletter.
Fundamentals are largely bearish due to oversupply concerns, especially given the huge build in stockpiles reported in the refined products last week, so all eyes will be on tonight's API data (barring any geopolitical headlines).
However, crude saw a build and products saw significant builds.
Source: Bloomberg WTI hovered around $58.40 ahead of the data, and dropped modestly on the surprise build.
The market is set to see a sizable surplus, which should mean weakness for both the flat price and time spreads,” said Warren Patterson, head of commodities strategy at ING, in a note.