WTI Dips After Bigger Than Expected Crude Inventory Build

Oil prices surged higher today on headlines that OPEC+ might discuss extending or deepening production cuts during their meeting in December.

“The biggest piece of news is that OPEC is considering deeper cuts,” said Josh Graves, senior market strategist at RJ O’Brien & Associates in Chicago.“I think that’s something that needs to be done.”

But all the algos will care about tonight is inventories…

API

• Crude +4.45mm (+2.2mm exp)

• Cushing +1.988mm

• Gasoline -702k (-2.3mm exp)

• Distillates -3.491mm (-2.8mm exp)

Even after last week’s huge build, analysts expected another build as refiners remain in maintenance season, and for the sixth week in a row, crude inventories rose (+4.45mm vs +2.75mm exp)

Source: Bloomberg

WTI hovered around $54.40 ahead of the API print, and dipped on the bigger than expected build…