Demand concerns and contagion from equity carnage continue to weigh on WTI (overwhelming fears about supply disruptions in Iran and Venezuela) as it tested a $65 handle again today.
API reported a bigger than expected 5.69mm crude build, the sixth weekly rise in inventories in a row. But Cushing saw a massive 14.4mm barrel rise in stocks (as Gasoline and Distillates drewdown).
API
-
Crude +5.69mm (+3.2mm exp)
-
Cushing +14.4mm (+2.1mm exp) – biggest ever build
-
Gasoline -3.5mm
-
Distillates -3.1mm
6 weeks of Crude builds in a row (and 6 weeks of Cushing builds and Distillate draws)…but the massive rise in Cushing stocks stands out and we suspect may be related to the hurricane…
WTI tested back into the $65 handle once again today, but some are suggesting that is weakness to buy…
“You’re approaching a level where a lot of traders are looking at value,” said Josh Graves, senior market strategist at RJO Futures in Chicago.
“The market is looking at growth potential in the future and trading off of earnings announcements and anything that can give an outlook on what oil prices might be down the road.”
But WTI was hovering just above $66.00 ahead of the API data… dipped and then popped…
via RSS https://ift.tt/2Rqr6iZ Tyler Durden