Oil prices have accelerated their gains overnight to 4-week highs after API reported a bigger-than-expected crude draw and mid-east tensions remain high.
“This is the market’s reaction to the unexpectedly pronounced fall in U.S. crude-oil stocks,” said Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt.
“Apart from crude-oil stock trends, the focus here is also likely to be on gasoline demand” as the northern hemisphere moves into the peak summer driving season.
Crude -7.55mm (-2.9mm exp) – biggest draw since March
Crude -12.778mm(-2.9mm exp) = biggest draw since Sept 2016
Following last week’s bigger-than-expected crude draw and API overnight, DOE expectations were for a notable crude draw (with a whisper number of 3.2mm), but no one expected the massive 12.78mm collapse in inventories – the biggest since Sept 2016. But there were draws across the board…
As the US oil rig count extends its declines, it appears – perhaps – that US crude production has peaked (for now)…
Bloomberg’s Michael Jeffers notes that U.S. weekly crude exports hit a new high, total crude and products exports are also at a new high, and the U.S. was a net petroleum exporter by 676,000 barrels last week.
WTI spiked immediately on the huge EIA data, extending the overnight API gains…
Testing the four week highs…
Notably, WTI has significantly outperformed Brent in the last few weeks as the WTI-Brent spread compresses on geopolitical tensions…
Zero Hedge’s mission is to widen the scope of financial, economic and political information available to the professional investing public, to skeptically examine and, where necessary, attack the flaccid institution that financial journalism has become, to liberate oppressed knowledge, to provide analysis uninhibited by political constraint and to facilitate information’s unending quest for freedom. Visit https://www.zerohedge.com
This post has been republished with permission from a publicly-available RSS feed found on Zero Hedge. The views expressed by the original author(s) do not necessarily reflect the opinions or views of The Libertarian Hub, its owners or administrators. Any images included in the original article belong to and are the sole responsibility of the original author/website. The Libertarian Hub makes no claims of ownership of any imported photos/images and shall not be held liable for any unintended copyright infringement. Submit a DCMA takedown request.