WTI Bounces Back Above $50 After Smaller Than Expected Crude Build

Oil prices plunged today as the U.S. Centers for Disease Control and Prevention (CDC) warned Americans to brace for an outbreak at home.

“This virus has had a violent effect across markets”, said David Tawil, president of Maglan Capital in New York.

“There may be more shocks to come as the virus spreads, prolonging the time for oil to regain its footing. No one knows how long or painful this will be.”

A spike in infections in other parts of Asia as well as the Middle East and Europe has raised fears of a global pandemic impacting the stability of the global economy.

API

• Crude +1.3mm

• Cushing +411k

• Gasoline +74k

• Distillates -706k

Crude stocks rose for the 5th week in a row, but API reported a smaller than expected build (and Gasoline also saw a small unexpected build)

 

 

WTI traded to a $49 handle ahead of the inventory data, and tried hard to rally back above $50 after the data hit…

“Russia still can’t make its mind up in joining OPEC,” says Price Futures’ Phil Flynn.