WTI posted a 5.2% gain in October, the first back-to-back monthly advance this year, and held up near the highs of the day into the API print. WTI/RBOB kneejerked higher as the data hit showing large inventory draws across everything…
API
- Crude -5.087mm (-1.3mm exp)
- Cushing -263k
- Gasoline -7.697mm (-1.55mm exp)
- Distillates -3.106mm
Big product draws in the previous week – and a modest crude build – bucked the recent trend but tonight's API data shows huge draws across everything…
Expectations that OPEC’s cuts are “tightening the market supply-demand fundamentals continues to drive prices higher,” Gene McGillian, a market research manager at Tradition Energy, told Bloomberg.
There is “a little bit of profit-taking and that’s why the rally seems to have kind of stalled. But, I don’t think we have any indications that the rebalance has completely been priced into the market”
The reaction was an immediate algo-buying panic then modest fade…
Jay Hatfield, portfolio manager at the InfraCap MLP exchange-traded fund, told Bloomberg, "inventories are in good shape. Demand is quite positive globally. We’ve been appropriately bullish."
via http://ift.tt/2h0oYlg Tyler Durden