WTI Hovers Above $58 After Bigger-Than-Expected Crude Draw

Oil prices, led by hope-ridden trade-deal headlines and OPEC+ chatter, have soared back above $58, erasing Friday’s losses…

But, after API’s reporting a bigger than expected crude draw, all eyes are on the official government data this morning…

API

• Crude -3.72mm (-1.5mm exp) – biggest draw since September

• Cushing -251k

• Gasoline +2.931mm

• Distillates +794k

DOE

• Crude -4.856mm (-1.5mm exp) – biggest draw since August

• Cushing -302k

• Gasoline +3.385mm

• Distillates +3.063m – biggest build since July

DOE data shows an even bigger crude draw than API reported (and an even bigger build in gasoline stocks)…

Source: Bloomberg

US crude production held at record highs…

Source: Bloomberg

And WTI was unsure where to go now that the algos ran the stops…

Bloomberg Intelligence Senior Energy Analyst Vince Piazza concludes: “Increasing demands among OPEC+ participants for deeper supply curbs confirm our concern about slowing demand. Additional cuts of 400,000 barrels a day would raise reductions to 1.6 million, while stronger compliance would further aid sentiment. Extending the deal for six months into 2H20 would provide the market with greater clarity.”