WTI Extends Gains Despite 2nd Week Of Massive Crude Builds, Gasoline Demand Spikes
Oil prices are higher this morning, despite last night’s API-reported massive crude build, but trading has been chaotic to say the least amid Russia production headlines and ‘fake’ CPI data. Aditionally, an improved OECD forecast for global economic recovery helped buoy crude prices.
“When it comes to lifting market sentiment, there is very little that can rival an upgrade to the post-COVID economic recovery,” said Stephen Brennock of broker PVM.
We suspect the effects of the storm driven demand and production issues will remain in this week’s data.
Crude +12.792mm (-833k exp)
Gasoline -8.499mm (-4.167mm exp)
Distillates -4.796mm (-3.667mm exp)
Crude +13.789mm (-833k exp)
Gasoline -11.869mm (-4.167mm exp)
Distillates -5.504mm (-3.667mm exp)
After last week’s chaotic swings in inventories (and API’s overnight), with crude stocks rising by the most on record, this week is expected to see some normalization. It didn’t… crude stocks soared as product stocks plunged once again…
These two weeks have pushed up US crude stocks to their highest since early December…
Gasoline demand jumped significantly as more states reopened (and Texas thawed out)
While higher prices are expected to bring more U.S. supplies back online, US crude production has merely rebounded to pre-storm levels…
WTI puked briefly this morning amid headline on Russian production but that was panic-bid right back up on clarifications. But prices were tumbling ahead of the official inventory data then reversed after the print – preumably on the gasoline draw?!
“In our view, the March 4 OPEC+ meeting has not just left the door to higher prices open, it has taken that door off its hinges and chopped it up for firewood,” Standard Chartered said in a note.
All of which suggests $3.000 gas at the pump is imminent…
And that won’t do anything to help gasoline demand as motorists’ pocketbooks get stretched.
Wed, 03/10/2021 – 10:35