WTI Extends Losses As Crude Stocks Surge To 4-Month Highs
Oil prices rollercoastered overnight, rallying on the surprise API-reported crude draw and then slumping during the EU session amid demand concerns (driven by the terrible vaccine rollout).
“The suspension [of AZN vaccines] will not do the bloc’s economic and fuel recovery any favors,” said Stephen Brennock of oil broker PVM.
“The hope now is that Europe can get its sluggish vaccine rollout back on track.”
Oil weakness was exacerbated by IEA’s latest report that said a supercycle was unlikely, demand won’t return to pre-pandemic levels until 2023 and could peak earlier than previously thought.
After the prior two weeks of record-breaking swings in inventories, this last week is expected to show only modest changes, with crude stocks sitting at their highest since early December.
Crude -1.00mm (+400k exp)
Gasoline -930k (-1.4mm exp)
Distillates +904k (-900k exp)
Crude +2.396mm (+400k exp)
Gasoline +472k (-1.4mm exp)
Distillates +255k (-900k exp)
Despite refinery utilization recovering from the weather chaos in Texas, crude stocks increased last week (significantly more than API and was expected).
US Crude production has yet to accelerate along with higher prices and more rigs…
WTI hovered around $64.50 ahead of the official inventory data and reversed its rebound on the print…
On the bright side, that $3.00 nation gas price may be avoided.
Wed, 03/17/2021 – 10:36