WTI Rebounds, Shrugging Off Another Big Gasoline Stock Build
Oil prices have pumped and dumped overnight, back to unchanged, after API reported a bigger than expected crude draw and much bigger than expected gasoline build that confused the algos.
Crude -3.5mm (-994k exp)
Gasoline +4.81mm- biggest build since April 2020
Crude -6.645mm (-994k exp, -2.5mm whisper)
Crude stocks fell more than expected (for the 3rd week in a row) but gasoline inventories continued their almost 6-week streak of builds..
Gasoline Demand weakness lingers…
Crude production has been flat to slightly lower as prices and rig counts have risen recently suggesting some capital discipline among drillers.
WTI was hovering near the lows of the day around $58.20 ahead of the data drop and spiked on the bigger than expected crude draw…
“Oil prices continue to grind higher on the combination of tight supply, a weak dollar and overall positive risk sentiment,” said Jens Pedersen, a senior analyst at Danske Bank.
Wed, 02/10/2021 – 10:35