With WTI unable to rally beyond $65 today due to trade war concerns (and with OPEC on its mind), investors’ expectations are for further inventory draws this week, which WTI did but an unexpected build in gasoline sent RBOB lower.
“The market is in a holding pattern awaiting OPEC decisions and tethered very closely to the stock market, which is crumbling,” said Thomas Finlon, director of Energy Analytics Group LLC in Wellington, Florida.
API
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Crude -3.016mm (-2.475mm exp)
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Cushing -1.594mm (-450k exp)
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Gasoline +2.113mm
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Distillates +750k
Another sizable draw for WTI but Gasoline surprised with a big build (as did Distillates)…
WTI was unable to get back above $65 during the day session and the API print sparked a kneejerk lower in WTI/RBOB before WTI recovered…
“We seem to be taking a hit again from the ante being raised in the U.S.-China trade war,” said John Kilduff, a partner at New York-based hedge fund Again Capital LLC. “And then of course the looming OPEC meeting: Russia’s reiterated that they are looking for a big increase.”
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