{"id":1455729,"date":"2024-02-06T21:40:00","date_gmt":"2024-02-07T02:40:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1455729"},"modified":"2024-02-06T21:40:00","modified_gmt":"2024-02-07T02:40:00","slug":"wti-holds-gains-after-api-reports-crude-cushing-builds-distillates-draw","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/wti-holds-gains-after-api-reports-crude-cushing-builds-distillates-draw\/1455729\/","title":{"rendered":"WTI Holds Gains After API Reports Crude\/Cushing Builds, Distillates Draw"},"content":{"rendered":"

WTI Holds Gains After API Reports Crude\/Cushing Builds, Distillates Draw<\/span><\/p>\n

\n

Oil prices managed gains today as MidEast risks trumped hawkish sentiment (and may even have been helped by a rise in rate-cut expectations as banking crisis fears reawakened).<\/p>\n

The EIA report – saying oil inventories will fall and so will US production<\/strong> – also supported price action today.<\/p>\n

Prices pared gains and even briefly declined after Qatari Prime Minister Sheikh\u00a0Mohammed Bin Abdulrahman Al Thani\u00a0said at a news conference that Hamas\u2019s response in negotiations over a ceasefire with Israel has been \u201cpositive.\u201d<\/strong><\/p>\n

<\/a><\/p>\n

But, as we note below, trading was very choppy today.<\/strong><\/p>\n

API<\/strong><\/p>\n

Crude +674k (+1.3mm exp)<\/p>\n

Cushing +492k<\/p>\n

Gasoline +3.65mm (+300k exp)<\/p>\n

Distillates -3.7mm (-2.0mm exp)<\/p>\n

Crude inventories rose very modestly for the second week in a row. Cushing saw stockpiles rise after 4 weeks of draws. Gasoline stocks built for the 6th straight week and distillates drew-down for the 3rd week…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

WTI was trading around $73.50 ahead of the print and was basically unchanged after…<\/p>\n

<\/a><\/p>\n

As the chart below shows, the day-session trading was extremely choppy as trend-following algos took control<\/p>\n

\u201cCurrent price action is instead consistent with CTA buying activity across both WTI and Brent crudes, as rangebound trading activity whipsaws trend signals once again,\u201d\u00a0<\/strong><\/em>Daniel Ghali, a commodity strategist at TD Securities, wrote in a note to clients.<\/p>\n

In its influential monthly Short-Term Energy Outlook, the EIA said it sees inventories dropping by 0.8-million barrels per day during the current quarter, supporting prices. As well, it sees US oil production dropping off a record.<\/p>\n

“We forecast production will return to almost 13.3 million b\/d in February but then decrease slightly through the middle of 2024 and will not exceed the December 2023 record until February 2025,” the outlook noted.<\/em><\/p>\n

Still, upside price gains may be “capped down the road due to rapidly falling expectations around aggressive Fed [interest] rate cuts and growing concerns over China’s economy,”<\/strong> Lukman Otunuga, manager, market analysis at FXTM told MarketWatch.<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nTue, 02\/06\/2024 – 16:40<\/span><\/p>\n

\u200bRead More<\/a>\u00a0<\/p>\n

\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

WTI Holds Gains After API Reports Crude\/Cushing Builds, Distillates Draw Oil prices managed gains today as MidEast risks trumped hawkish sentiment (and may even have…<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-1455729","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-66Hv","jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1455729","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1455729"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1455729\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1455729"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1455729"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1455729"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}