WTI Holds Losses Despite Across-The-Board Inventory Draws
Oil prices tumbled today after Russia said some troops are starting to return to their permanent bases, removing some of the geopolitical risk premium that has been embedded recently.
“Profit-taking with oil was inevitable after Russia’s Defense Ministry stated that some troops are starting to return to their regular bases after completing drills,” said Ed Moya, Oanda’s senior market analyst for the Americas.
“The Ukraine situation still remains tense and oil prices could swing $10 in either direction.”
But for now, the next leg will be governed by any potential surprise in tonight’s inventory data.
Crude -1.076mm (-220k exp)
Gasoline -923k (-900k exp)
Distillates -546k (-1mm exp)
[ZH: apologies for an incorrect transposition earlier of Cushing stocks]
This is the 6th straight week of falling stocks at the Cushing hub as API reported inventory draws across the board…
Having neared $96 amid Friday’s panic-fear-mongering of an imminent invasion by the Biden administration, today’s Putin headlines sent WTI back to a $90 handle briefly before it bounced back to $92 after Biden spoke again and reiterated the threats. WTI oscillated around $92 after the API report…
“Whatever the answer is, the reality is that when they find that number, oil will resume the rally,” said Phil Flynn, senior market analyst at The Price Futures Group, in a Tuesday note. “Global oil inventories were tight before this tension and will be tight after things hopefully calm down.”
Tue, 02/15/2022 – 16:38