WTI Holds Losses After Official Data Shows Crude Inventory Build
Oil prices are lower this morning, after a brief jump following last night’s API-reported surprise crude draw. The weakness followed a U.S. government report which forecast oversupply next year, cooling expectations of an immediate emergency stock release. The U.S. government projected that the global market will become oversupplied and prices will fall by early next year.
Crude -2.485mm (+1.6mm exp)
Gasoline -552k (-1.2mm exp)
Distillates +573k (-1.1mm exp)
Crude +1.002mm (+1.6mm exp)
Gasoline -1.555mm (-1.2mm exp)
Distillates -2.613mm (-1.1mm exp)
While API reported a draw, official data confirmed a crude inventory build.
Cushing crude stocks fell very modestly last week, remaining near operational lows, well below seasonal averages…
US crude production was flat from the previous week, hovering right at pre-Hurricane-Ida levels…
WTI was hovering around $83.75 ahead of the official data, dropped on the surprise build, then rebounded…
The battle between Biden’s desperate jawboning please for more production and the reality of demand coming back continues to play out.
Demand has already jumped back to pre-pandemic levels and is poised to go even higher early next year, said Russell Hardy, the chief executive officer of Vitol Group said. Hardy said market supply and demand is “going to be reasonably tight” for the next 12 months and a price spike to $100 a barrel is “certainly a possibility.”