WTI Extends Losses After Massive Product Inventory Build, New Record Production

WTI Extends Losses After Massive Product Inventory Build, New Record Production

Oil prices are extending losses after last night’s surprise crude build reported by API, with WTI trading below $58 following OPEC’s latest forecasts suggesting a weaker outlook for global oil markets this year as surging supplies from competitors from Norway to Guyana threaten the group’s efforts to defend crude prices.

API

  • Crude +1.1mm (-1.1mm exp)

  • Cushing -69k (-1.0mm exp)

  • Gasoline +3.2mm  (+3.4mm exp)

  • Distillates +6.78mm (+1.1mm exp)

DOE

  • Crude -2.55mm (-1.1mm exp)

  • Cushing +342k (-1.0mm exp)

  • Gasoline +6.678mm (+3.4mm exp)

  • Distillates +8.171mm (+1.1mm exp)

The prior week was dominated by a surprise crude build and huge product inventory builds. This week saw crude inventories drop modestly (-2.55mm) but gasoline and distillates inventories soar (and the first Cushing build in 9 weeks)