WTI Rebound Stalls As Gasoline Demand Slide Continues

Take Control of Your Domain Names

WTI Rebound Stalls As Gasoline Demand Slide Continues

Oil prices rebounded dramatically overnight after API reported a surprise build and Trump’s rejection of the COVID Lockdown Relief Bill sent WTI down to almost a $45 handle before a weaker dollar and an odd equity bid lifted commodites broadly.

“Jitters surrounding the new strain of the virus remain front and center,” said Stephen Brennock, an analyst at PVM Oil Associates Ltd.

“The specter of fresh restrictions now hangs over Europe together with the prospect of a drawn-out recovery.”

For now, all eyes will be on crude stocks as lockdowns spread across the states…


  • Crude +2.70mm (-3.1mm exp)

  • Cushing +341k

  • Gasoline -224k (+600k exp)

  • Distillates +1.03mm (-1mm exp)


  • Crude -562k (-3.1mm exp)

  • Cushing -26k

  • Gasoline -1.125mm (+600k exp)

  • Distillates -2.325mm (-1mm exp)

Analysts expected a second weekly draw after crude’s huge build 2 weeks ago, as API’s build is shrugged off for now, and DOE delivered.. but only small with a mere 562k barrel drop in stocks. Inventories in Cushing also fell along with products seeing drawdowns…

Source: Bloomberg

The 4-week average of Implied Gasoline Demand dropped for the 10th straight week..

Source: Bloomberg

US Crude Production remained flat at 11mm b/d for the 3rd week…

Source: Bloomberg

WTI traded around $47.80 ahead of the official data this morning and slipped modestly after…

The threat to near-term demand from additional stay-at-home measures has rippled across oil markets.

Brent contracts for prompt delivery are back at a discount against later deliveries – a bearish pattern known as contango.




Tyler Durden
Wed, 12/23/2020 – 10:35

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.

-> Click Here to Read the Original Article <-

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Weekly Newsletter SignupTop 5 Stories of the Week

Subscribe to our newsletter to receive a weekly email report of the top five most popular articles on the Libertarian Hub!