WTI/RBOB prices are higher once again amid escalating tensions over Syria, despite dipping on a surprise build from API; but when DOE confirmed a big surprise crude build, WTI/RBOB prices slid. US crude production also rose once again to a new record high.
Bloomberg Intelligence Senior Energy Analyst Vince Piazza notes that WTI discounts to Brent of more than $5 a barrel continue to drive crude exports, helping to pull U.S. oil stockpiles down.
Skeptics would argue that crude production is rising to meet demand, fed by near-term enthusiasm for higher prices, encouraging even more output.
API’s surprise crude build was confirmed by DOE (and was even larger) and Gasoline also saw inventories build.
Once again US crude production is on everyone’s mind and it rose once again to a new record high…jumping 0.62% to over 10.5mm b/d
WTI/RBOB prices are higher, after dipping on API data last night, following further escalating rhetoric from Trump regarding Syria, and Eurocontrol, an air traffic agency in Europe, asked airlines to apply caution on flights to the eastern Mediterranean region because of possible air strikes in Syria over the next 72 hours.
But prices slid after DOE confirmed the crude build…
“We are pricing the expectation of a strike on Syria,” said Olivier Jakob, managing director of consultants Petromatrix GmbH in Zug, Switzerland.
“Then we need to reassess once it has been done to see how much of an escalation that we have.”
As a reminder, crude spiked in April 2017 when Trump fired the Tomahawks at Syria, then reversed… and then ran higher once again…
Read On ZeroHedge