FAST FIVE: WTI Holds Gains After Bigger Than Expected Crude Draw
WTI Holds Gains After Bigger Than Expected Crude Draw Oil prices ended the day higher after traders dealt with uncertainty around China demand amid a surge in cases and a European Union proposal to soften Russian crude sanctions.
“Crude is still in the process of reversing the OPEC rumor of production increases from yesterday,” said Dennis Kissler, senior vice president at Bok Financial Securities in an interview.
“While China's Covid issues are a concern, the price break the past two trading sessions was definitely overstated.” But for now, in this illiquid week, all eyes are back on the data for the next signal.
API Crude -4.8mm (-2.20mm exp) Cushing -1.40mm Gasoline -400k Distillates +1.1mm After a large draw the previous week, analysts expected another (smaller) draw but were surprised when API reported another considerable drop in US crude stocks (-4.8mm) Source: Bloomberg WTI was hovering just above $81 and lifted modestly on the API print.
Tomorrow's official data will be the big one though – as Europe folds like a broken deckchair over fear of Russian retaliation.