WTI Extends Losses After Surprise Crude Inventory Build

Oil prices traded down today on the back of confidence Saudi comments about the pace of recovery from the attack on its largest refinery.

“During the two past days, we managed to contain the damage by recovering more than half of the production that we had lost during that terrorist attack,” Energy Minister Prince Abdulaziz bin Salman said at a briefing in Jeddah. “Thus the company will be able to meet all its commitments to customers this month by drawing on its crude oil reserves.”

While all eyes will remain on Saudi production/supply, we suspect some marginal moves on the heels of inventory data (especially in light of potential storm disruptions).

The market will be monitoring for more declines at Cushing, Okla., and overall U.S. crude inventory decreases after the startup of new Permian pipelines, says John Kilduff, partner at Again Capital

API

• Crude +592k (-2.5mm exp)

• Cushing -846k

• Gasoline +1.6mm (-500k exp)

• Distillates +2.00mm (+500k exp)

After four straight weeks of draws, US Crude inventories showed a surprise 592k barrel build last week (and builds for gasoline and distillates), pressuring WTI prices even lower on the day…

 

WTI hovered around $59 ahead of the API print and extended losses after the surprise build…