WTI Jumps Back Above $56 After Smaller Than Expected Crude Build

Read Full Article At The Original Source

WTI Jumps Back Above $56 After Smaller Than Expected Crude Build

Oil prices are rebounding modestly this morning after the biggest drop in seven weeks yesterday and following weakness (to a $54 handle for WTI overnight) after last night’s bigger than expected API-reported crude build.

“Refineries should show more progress and be further back on online,” says John Kilduff partner at Again Capital in New York.

“Then, we are only weeks away from the IMO2020 situation and the distillate category keeps plummeting so we have to see how big the drawdown is there and if that could possibly lend support more to the market”

But, oil inventories are poised to rise for the week ended Nov. 15, even as refinery utilization increases, underlining the risks of slowing economic growth and reduced demand

API

  • Crude +5.954mm (+1.5mm exp)

  • Cushing -1.351mm

  • Gasoline +3.354mm

  • Distillates -2.19mm

DOE

  • Crude +1.379mm (+1.5mm exp)

  • Cushing -2.295mm

  • Gasoline +1.776mm (-750k exp)

  • Distillates -974k

Refinery crude runs should be rising as the fall maintenance season draws to a close and gasoline stocks rose for the second week (expectations were for a draw). Official crude inventories rose less than API reported and less than expected…

WTI Jumps Back Above  After Smaller Than Expected Crude Build

Source: Bloomberg

Last week, we saw a surprise 200k b/d increase in weekly production that led to another new record, despite the ongoing collapse in rig counts and production remained at those highs…

WTI Jumps Back Above  After Smaller Than Expected Crude Build

Source: Bloomberg

WTI was hovering just below $56 ahead of the DOE data and lurched above it after the smaller than expected crude build…

WTI Jumps Back Above  After Smaller Than Expected Crude Build

We’ll see if it holds.


Tyler Durden

Wed, 11/20/2019 – 10:36