WTI Slides After Surprise Crude Inventory Build
Tyler Durden
Tue, 06/16/2020 – 16:34
WTI managed gains today on recovery (record jump in US retail sales) and virus cure hopes (trumping outbreak resurgence fears) pushing WTI back to $38.
“China’s shuttering of Beijing’s schools is a significant setback to the country’s recovery from the Covid-19 virus, and it could be a real blow to the petroleum demand recovery outlook, which had been improving,” said John Kilduff, a partner at Again Capital LLC.
However, US crude inventories are expected to have fallen last week amid weather-related Gulf of Mexico production losses and a drop in imports.
API
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Crude +3.857mm (-3.5mm exp)
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Cushing -3.289mm
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Gasoline +4.267mm (-2.2mm exp)
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Distillates +919k (+3.1mm exp)
Despite the expectations of storm-related drop in inventories, crude stocks unexpectedly rose last week. This is also the 11th straight week of distillates builds…
Source: Bloomberg
The lifting of some lockdown restrictions is primarily impacting gasoline consumption, not industrial diesel demand yet.
WTI hovered just above $38 ahead of the data, but dropped back below it after the surprise build…
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