FAST FIVE: WTI Holds Gains Amid Surprise Crude Build, Large Gasoline Draw
WTI Holds Gains Amid Surprise Crude Build, Large Gasoline Draw Tyler Durden Tue, 09/22/2020 – 16:36 Amid Hurricane Laura and Tropical Storm Beta shut-ins, and concerns over 2nd or 3rd (or whetever) waves of COVID cases, there is plenty of noise but WTI prices managed a small rebound todays after yesterday's bloodbath in black gold.
API Crude +691k (-4.0mm exp) Cushing +298k Gasoline -7.735mm (-1.9mm exp) – biggest draw since Sept 2017 Distillates -2.104mm (+1.2mm exp) Some serious errors from expectations in the API data with a surprise (but small) crude build, a huge gasoline draw and a surprise distillate draw.
Source: Bloomberg While the bounce Tuesday was welcome for oil bulls, analysts said uncertainty around the outlook for both demand and supply was likely to keep a lid on the market in the near term.
The measures “put in place to curb the pandemic have a direct and comparatively marked impact on oil demand,” said Barbara Lambrecht, analyst at Commerzbank, in a note.
WTI hovered around $39.80 ahead of the API data and was largely unchanged after the print.