WTI Extends Losses After Bigger Than Expected Crude Build

WTI Extends Losses After Bigger Than Expected Crude Build

Oil prices dipped today ahead of the Fed’s possible taper tomorrow and as investors assessed the likelihood of OPEC+ succumbing to pressure to add more crude to the market.

“OPEC is coming under more political pressure from importing countries to boost supply because oil prices are at the highest level in seven years,” said Pavel Molchanov, an analyst at Raymond James & Associates Inc.

“Balancing the question mark about demand with political pressure on the other end of the spectrum — it seems like maintaining status quo is the most logical approach for OPEC to take right now.”

But all eyes are on inventories again for now…

API

Crude +3.594mm (+2.25mm exp)

Cushing -882k

Gasoline -552k

Distillates +573k

That is the 5th weekly crude build in the last six weeks and

Source: Bloomberg

WTI was hovering around $83.50 ahead of the print and dipped on the bigger than expected build…

The nervousness in the markets due to the central bank removing additional stimulus is leading investors to risk aversion and a stronger dollar, said Ed Moya, senior market analyst at Oanda Corp.

Tyler Durden
Tue, 11/02/2021 – 16:40

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