FAST FIVE: WTI Extends Gains After API Reports Significant Draws

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WTI Extends Gains After API Reports Significant Draws Oil prices have soared in the last few days (to 3-week highs) as the dollar weakened and OPEC+ hinted at greater and greater production cuts.

“The potential cut increasing from 1 million barrels a day to 2 million barrels implies a more aggressive approach,” said Stacey Morris, head of energy research at Alerian VettaFi.

API Crude -1.77mm Cushing +925k Gasoline -3.47mm Distillates -4.05mm – biggest draw since Mar 2022 Crude stocks drew down for the second straight week, and products saw major draws (likely stockpiling ahead of Hurricane Ian).

Source: Bloomberg And finally bear in mind that Biden does not have much room to play in the SPR release into the Midterms.

Source: Bloomberg That is a record low 2-day supply left for real 'emergencies'.

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