WTI Extends Gains After Across The Board Inventory Draws

WTI Extends Gains After Across The Board Inventory Draws

Oil prices rallied overnight as expectations (prompted by API’s report last night) of inventory drawdowns dominated fears of a Delta-driven drop in demand.

“This price catalyst may inject some much-needed momentum into proceedings, especially after the API set a bullish tone,” said Stephen Brennock of broker PVM, referring to the EIA report.

But, a rising number of coronavirus cases worldwide, despite vaccination programs, has limited the upside for oil and remains a concern.

API

Crude -4.728mm (-2.55mm exp)

Cushing -126k

Gasoline -6.226mm

Distillates -1.882mm

EIA

Crude -4.09mm (-2.55mm exp)

Cushing -1.268mm

Gasoline -2.25mm

Distillates -3.088mm

Official EIA data confirmed API’s report that inventories drew down across all segments…

Source: Bloomberg

Gasoline demand was steady for the 3rd straight week after the July 4th spike…

Source: Bloomberg

US crude production continues to remain relatively well disciplined, but had started to accelerate amid high prices and high rig counts. Last week saw production slip back however (-200k b/d)…

Source: Bloomberg

WTI hovered right below $72 ahead of the EIA data and rallied back above it on the draws…

 

Tyler Durden
Wed, 07/28/2021 – 10:37

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