{"id":1458758,"date":"2024-02-22T16:08:11","date_gmt":"2024-02-22T21:08:11","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1458758"},"modified":"2024-02-22T16:08:11","modified_gmt":"2024-02-22T21:08:11","slug":"wti-extends-gains-after-big-product-draw-smaller-crude-build","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/wti-extends-gains-after-big-product-draw-smaller-crude-build\/1458758\/","title":{"rendered":"WTI Extends Gains After Big Product Draw, Smaller Crude Build"},"content":{"rendered":"

WTI Extends Gains After Big Product Draw, Smaller Crude Build<\/span><\/p>\n

\n

Oil prices dumped and pumped overnight but are holding gains for now ahead of the official inventory data as traders continue to weigh tightening physical supplies <\/strong>(Brent\u2019s\u00a0prompt spread strengthening to 95 cents in backwardation, hovering at three month highs)<\/em> <\/strong>against pressure from higher for longer rates<\/strong> (weighing on the demand side).<\/em><\/p>\n

\u201cCrude oil continues to build a floor above $75 in WTI and $80 in Brent, but for now upside remains curbed,\u201d said\u00a0Ole Hansen, head of commodities strategy at Saxo Bank.<\/em><\/p>\n

\u201cNvidia\u2019s strong result yesterday helped boost risk sentiment and the dollar is heading for its first weekly loss this year, potentially adding some additional support to crude and other commodities.\u201d<\/em><\/p>\n

A<\/em>dditionally, the ongoing tensions in the middle east are supporting prices.<\/p>\n

The \u201coil price is expected to continue to be range-bound short term despite escalating tensions in the Middle East,\u201d said\u00a0Helge Andre Martinsen, a senior oil analyst at DNB Bank ASA.<\/em><\/p>\n

\u201cContinued strong non-OPEC production data, from Norway and Canada this week, combined with a soft global economic outlook counter the effect of higher Middle East tensions.\u201d<\/em><\/p>\n

After last week’s huge surprise crude build (and product draws) this week was expected to see more of the same, and API reported a sizable build…<\/p>\n

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

Crude +7.17mm (+3.2mm exp)<\/strong><\/p>\n

Cushing +668k<\/p>\n

Gasoline +415k (-2.1mm exp)<\/p>\n

Distillates -2.91mm (-1.4mm exp)<\/strong><\/p>\n

DOE<\/strong><\/p>\n

Crude +3.5mm (+3.2mm exp)<\/strong><\/p>\n

Cushing +741k<\/p>\n

Gasoline -293k (-2.1mm exp)<\/p>\n

Distillates -4.01mm (-1.4mm exp) – biggest draw since May 2023<\/strong><\/p>\n

The official data reported a smaller crude build than API reported but we also saw the biggest distillates draw since May 2023, (and small gasoline draw)<\/p>\n

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

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

The Biden admin added to the SPR for the 10th straight week (+748k barrels)…<\/p>\n

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

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

US crude production remains at a record high 13.3mm b\/d…<\/p>\n

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

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

WTI was hovering right around $78.20 ahead of the print and extended gains after the build…<\/p>\n

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

Oil has remained in a roughly $10 trading range this year as the push and pull of bearish and bullish factors mute\u00a0volatility. <\/strong><\/p>\n

Attacks on ships in the Red Sea and the Israel-Hamas war have ramped up tensions in the Middle East and added a geopolitical\u00a0risk premium\u00a0to prices.<\/p>\n

Still, concerns about the outlook for China\u2019s economy and its impact on consumption, as well as the pace of non-OPEC supply growth, are limiting gains.<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nThu, 02\/22\/2024 – 11:08<\/span><\/p>\n

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

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

WTI Extends Gains After Big Product Draw, Smaller Crude Build Oil prices dumped and pumped overnight but are holding gains for now ahead of the…<\/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-1458758","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-67um","jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1458758","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=1458758"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1458758\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1458758"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1458758"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1458758"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}