WTI Extends Gains After Surprise Crude Draw

Oil prices are up this morning, with WTI back at $80, as Hurricane Ian shuts in Gulf of Mexico production. That was enough to overcome the strong dollar headwind.

Another factor putting upward pressure on prices is the upcoming meeting of OPEC+ on Oct. 5. Russia is reported to be pushing for an output cut of around 1 million barrels a day.

DOE

• Crude -215k (API +4.2mm)

• Cushing +692k

• Gasoline -2.42mm – biggest draw since August

• Distillates -2.89mm – biggest draw since April

Following API’s reported 4.2mm barrel build, the official data showed a complete opposite with a small 215k draw and while Cushing stocks rose for the second week, products also saw major draws (perhaps driven by pre-emptive shifts before Hurricane Ian)…

Source: Bloomberg

Continued US emergency oil releases (4.6mm last week) brought Strategic Petroleum Reserve supplies down to 422.6 million barrels, according to preliminary Energy Department data. That means the stockpile could dip below commercial inventories for the first time since it was created in the 1980s.

US Crude production slipped a little last week, as rig counts rebounded…

Source: Bloomberg

WTI was hovering just below $80 ahead of the official data and spiked above $81 after…

Finally, we note that regular gas prices at the pump are up 8 days in a row…

Is that still the Putin Price Hike? Or are we back to blaming the gas station owners for gouging?