WTI Rebounds On Small Crude Build, Big Cushing Draw

WTI Rebounds On Small Crude Build, Big Cushing Draw

Oil prices ended lower today after swinging between gains and losses driven by factors including a potential release of crude from U.S. reserves and fuel-switching concerns.

“Crude prices remain very choppy as energy traders await a decision from the Biden administration over an SPR release,” said Ed Moya, senior market analyst at Oanda Corp.

“It seems the energy market is convinced that even if the U.S. resorts to tapping the strategic petroleum reserve, the benefits would be minimal.”

Jim Bullard’s hawkish comments also did not help early on in energy markets.

API

Crude +655k (+1.2mm exp)

Cushing -2.792mm

Gasoline -491k

Distillates +107k

Analysts expected a fourth straight week of crude inventory builds and they were right, although the increase was smaller than expected. Cushing crude stocks fell once again, getting ever closer to operational limits…

Source: Bloomberg

WTI tested $80 intraday before bouncing back and hovering around $80.75 ahead of API’s data…

“We’re still on the cusp of winter, which is the peak demand season and there’s still a bullish undertone to the market,” said John Kilduff, founding partner at Again Capital LLC. “It’s a tight set-up and still vulnerable to some upside if they don’t come through with the SPR release.”

Tyler Durden
Tue, 11/16/2021 – 16:36

Share DeepPol