FAST FIVE: WTI Dips After Worrisome Surge In Gasoline Stocks, Demand At 5-Month Lows
“The recent news around Covid-19 vaccines has boosted crude prices as markets start to look to a return to some sort of normality in 2021,” said HSBC Bank analyst Gordon Gray.
Gasoline stocks rose more than expected (for the second week in a row), which is worrisome.
Source: Bloomberg WTI was hovering around $45.30 ahead of the official inventory data, and limped modestly lower after the print.
Bloomberg Intelligence Energy Analyst Fernando Valle notes that gasoline-demand headwinds loom large ahead of the Thanksgiving holiday due to restrictions on travel, with the potential for an extended build in inventories and more pain.
Stockpiles rose 2.2 million barrels to go over 230 million barrels — the US is swimming in gasoline right now.