{"id":1459766,"date":"2024-02-28T15:40:44","date_gmt":"2024-02-28T20:40:44","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1459766"},"modified":"2024-02-28T15:40:44","modified_gmt":"2024-02-28T20:40:44","slug":"wti-retraces-gains-after-crude-build-spreads-signal-physical-market-tightening","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/wti-retraces-gains-after-crude-build-spreads-signal-physical-market-tightening\/1459766\/","title":{"rendered":"WTI Retraces Gains After Crude Build; Spreads Signal Physical Market Tightening"},"content":{"rendered":"

WTI Retraces Gains After Crude Build; Spreads Signal Physical Market Tightening<\/span><\/p>\n

\n

Oil prices are extending gains this morning, reversing earlier losses, as reports suggest OPEC+ will rollover its production cuts. This will pressure supply as Red Sea disruptions are triggering widely tracked\u00a0gauges\u00a0of the physical market to point to tighter conditions.<\/strong><\/p>\n

Last night’s big crude build, reported by API, was shrugged off (helped by a bigger than expected gasoline draw).<\/p>\n

Bulls will be hoping to see a smaller crude build<\/p>\n

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

Crude +8.428mm (+1.5mm exp)<\/strong><\/p>\n

Cushing +1.825mm<\/p>\n

Gasoline -3.27mm(-1.3mm exp)<\/p>\n

Distillates -523k (-2.0mm exp)<\/p>\n

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

Crude +4.199mm (+1.5mm exp)<\/strong><\/p>\n

Cushing +1.458mm<\/strong><\/p>\n

Gasoline -2.83mm (-1.3mm exp)<\/p>\n

Distillates -510k (-2.0mm exp)<\/p>\n

Official data showed a smaller Crude build than API (but still more than expected) as well as a decnt build at Cuishing<\/p>\n

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

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

The Biden administration has added to the SPR for 12 of the last 14 weeks (+743k last week)<\/p>\n

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

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

US Crude production was steady at record highs (13.3mm b\/d) as rig counts have stopped falling…<\/p>\n

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

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

WTI was hovering just above $79 ahead of the official data and extended its retracement on the official data…<\/p>\n

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

So-called prompt spreads – the premium that the most immediate crude futures contract commands over the next one – for Brent and West Texas Intermediate recently rallied to the widest backwardation in about four months, excluding contract expiry anomalies.<\/a><\/p>\n

Spreads are \u201con fire, pointing to tight physical markets,\u201d <\/strong>said\u00a0Daniel Ghali, a commodity strategist at TD Securities.<\/p>\n

WTI prompt spread…<\/p>\n

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

\u201cWith Europe taking fewer Middle East barrels due to the extra shipping costs to avoid the Red Sea, there is a preference for short haul and that pool of alternatives is thinner,\u201d<\/strong><\/em> said\u00a0Christopher Haines, an analyst at Energy Aspects.<\/p>\n

Brent prompt spread..<\/p>\n

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

Other gauges such as the so-called physical market\u00a0swaps\u00a0and the WTI\u00a0cash roll\u00a0have also strengthened.<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nWed, 02\/28\/2024 – 10:40<\/span><\/p>\n

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

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

WTI Retraces Gains After Crude Build; Spreads Signal Physical Market Tightening Oil prices are extending gains this morning, reversing earlier losses, as reports suggest OPEC+…<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1459766","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1459766","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=1459766"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1459766\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1459766"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1459766"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1459766"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}