WTI Holds Around $48 After Crude Production Hit New Record Highs, Refined Product Stocks Tumble

WTI Holds Around $48 After Crude Production Hit New Record Highs, Refined Product Stocks Tumble

Oil prices extended gains this morning on the back of hopes for 1.2mm b/d production cut from OPEC+ (and entirely dismissing reports that Russia is against the idea), after a smaller than expected API crude build last night.

“In terms of fundamentals the numbers are being changed very quickly,” says Olivier Jakob, managing director of Petromatrix GmbH.

“It’s going to be about OPEC and the reaction to that. There’s a lot of uncertainty.”

For now we focus on the official inventory data.

API

  • Crude +1.69mm (+3mm exp)

  • Cushing -1.352mm

  • Gasoline -3.9mm (-1.87mm exp)

  • Distillates -1.7mm (-2mm exp)

DOE

  • Crude +784k (+3mm exp)

  • Cushing -1.971mm – biggest draw since Dec 2019

  • Gasoline -4.339mm (-1.87mm exp) – biggest draw since April 2019

  • Distillates -4.008mm (-2mm exp) – biggest draw since March 2019

The sixth weekly crude build in a row (though considerably less than expected) was offset by huge product draws…