FAST FIVE: WTI Extends Losses After Massive Product Inventory Build, New Record Production
WTI Extends Losses After Massive Product Inventory Build, New Record Production Oil prices are extending losses after last night's surprise crude build reported by API, with WTI trading below $58 following OPEC's latest forecasts suggesting a weaker outlook for global oil markets this year as surging supplies from competitors from Norway to Guyana threaten the group's efforts to defend crude prices.
API Crude +1.1mm (-1.1mm exp) Cushing -69k (-1.0mm exp) Gasoline +3.2mm (+3.4mm exp) Distillates +6.78mm (+1.1mm exp) DOE Crude -2.55mm (-1.1mm exp) Cushing +342k (-1.0mm exp) Gasoline +6.678mm (+3.4mm exp) Distillates +8.171mm (+1.1mm exp) The prior week was dominated by a surprise crude build and huge product inventory builds.
This week saw crude inventories drop modestly (-2.55mm) but gasoline and distillates inventories soar (and the first Cushing build in 9 weeks) Source: Bloomberg US Crude production pushed higher, hitting 13mm b/d for the first time.
Source: Bloomberg WTI traded sub-$58 ahead of the API print, and dropped notably after the huge buiulds in products WTI trading $57.50 is the lowest in 5 weeks.