WTI Rebounds After Crude Draw, Distillates Build
Oil prices rollercoastered overnight after a relatively weak API report with WTI testing down to a $66 handle before rallying up to a $68 handle and then fading back to unchanged from last night’s API report.
Additionally, crude inventories in Europe’s key oil-trading hub have fallen to the lowest since March 2020, partly due to constrained supply from Russia and the North Sea.
“European demand is seeing a late summer recovery with improved refining margins,” Jane Rangel, a crude analyst with Energy Aspects, said by email.
“Turnarounds are low this month, leaving August runs hitting an 18-month high as refineries maximize use of conversion units.”
All eyes will once again be on gasoline stocks to see if any signs of delta’s impact on demand can be discerned…
Crude -1.622mm (-3.2mm exp)
Gasoline -985k (-1.5mm exp)
Distillates -245k (-400k exp)
Crude -2.98mm (-3.2mm exp)
Gasoline -2.241mm (-1.5mm exp)
Distillates +645k (-400k exp)
A smaller than expected crude draw and surprise distillates build were likely the biggest standouts from the official report, though the changes were all rather modest…
US crude production was flat last week as rig counts continued to rise…
WTI was holding around $67.25 ahead of the official data and rallied after the crude draw…
“While volatility looks set to continue, we see further gains for oil as global economic normalization continues and OPEC remains disciplined on crude supplies,” said Mark Haefele, chief investment officer at UBS Global Wealth Management.
Wed, 08/25/2021 – 10:35