WTI Extends Gains Despite Bigger Than Expected Crude Build

Oil climbed to the highest level this month amid U.S. sanctions on Rosneft Trading and mounting tensions in Libya threatened global crude supply and the ongoing optimism that the peak impact of the virus on China demand is behind us.

“It’s a big turnaround,” said Mike Hiley, head of OTC energy trading with LPS Partners. “There’s no doubt the market is getting a lift from Libya and sanctions.”

However, another big crude build will wipe some of that smile off the markets.

API

• Crude +4.2mm (+2.5mm exp)

• Cushing +400k

• Gasoline -2.7mm

• Distillates -2.6mm

This is the 4th weekly crude build in a row (and bigger than expected)…

Source: Bloomberg

WTI traded up to three-week highs today hovering around $53.50 ahead of the data

And extended gains despite the bigger than expected crude build…