WTI/RBOB prices ended the day lower but bounced a little after Trump’s statement, running flat into API but a pushed WTI briefly back above $70 following a surprise crude draw (and large product draws).
- Crude -1.85mm (+1mm exp)
- Cushing +1.653m
- Gasoline -2.055mm
- Distillates -6.674mm – biggest draw since 2004
Surprise crude draw and big product draws broke the trend of the last two weeks…
Of course, all eyes are focused on Iran more than inventories. The U.S. decision to reinstate “the highest level of economic sanctions” on Iran will lead to gradually and modestly reduced oil production by the world’s fifth-largest producer, according to Oxford Economics.
Heading into the API data, WTI/RBOB prices were flat line after the swings around Trump’s statement and CNN’s fake news… and both popped a little after – with WTI tagging $70 once again…
Oil VIX tumbled after Trump -erasing yesterday’s protection bid…