WTI/RBOB prices soared once again today amid hopes for an 8th straight week of crude draws (and overall stockpiles near 5y average levels). API did not disappoint with a massive 11.19mm crude draw (biggest since Sept '16) and continued builds in gasoline and distillates. WTI Knee-jerked to the highs of the day.
“The market is anticipating a pretty good draw in the crude oil storage number,” Bob Yawger, director of futures at Mizuho Securities USA Inc. in New York, said by telephone.
Last week's massive product inventory builds (and ongoing crude draw - last week biggest draw since Aug) continued with a massive crude build (11.19mm would be the bigg4est crude draw since Sept 2016 if it hold sup for DOE data).
Overall, US crude stockpiles are nearing the five-year average after three years above that level...
The last time oil inventories in the world’s biggest economy touched these levels was September 2015.
WTI touched $63 intraday today ahead of the API print and spiked modestly higher on crude's huge draw...
“Production cuts and demand are continuing to rebalance the market,” Gene McGillian, a market research manager at Tradition Energy in Stamford, Connecticut, said by telephone.