Press "Enter" to skip to content

WTI Sinks After Big Gasoline Build Sparks Demand Doubts

ZeroHedge News

WTI Sinks After Big Gasoline Build Sparks Demand Doubts

Tyler Durden

Wed, 11/18/2020 – 10:37

Oil prices are higher overnight, as Pfizer vaccine headlines offer hope for a return to normal demand (shrugging off last night’s bearish API inventory report) and signs of robust consumption in Asia.

“It’s going to help support petroleum demand when the vaccine becomes more readily available, but widespread distribution isn’t really expected until next year,” said Andrew Lebow, senior partner at Commodity Research Group. “But nevertheless, the news definitely adds to sentiment and helps support the market.”

 

 

API

  • Crude +4.174mm (+100k exp)

  • Cushing +176k

  • Gasoline +256k (+300k exp)

  • Distillates -5.024mm (-1.8mm exp)

DOE

  • Crude +769k (+100k exp, +1.36mm whisper)

  • Cushing +1.2mm

  • Gasoline +2.611mm (+300k exp) – biggest build since May 2020

  • Distillates -5.216mm (-1.8mm exp)

Amnon Free Press:  The New Zealand rugby player rated the best value import in the history of the English Premiership

After last night’s surprising (and large) crude build reported by API, whisper numbers rose into the official print which came at +769k (considerably less than API). However, Gasoline stocks jumped more than expected. This is the 9th week in a row of Distillates draws.

Source: Bloomberg

The surprisingly large build in gasoline stocks may be here to stay in the short-run as US states discourage Thanksgiving travel, the biggest driving holiday of the year.

US crude production continues to be noisy as storm shut-ins come and go, but we are back to ‘normal’-ish…

Amnon Free Press:  Rural Oregon Counties Have Had It – Vote To Break Off And Join Red State Idaho

Source: Bloomberg

As Bloomberg’s Anastacia Dialynas notes, a big underlying question is what is the larger trend for production? EIA anticipates November production will grow and average 11.25 million barrels per day, according to the outlook it published last week. However, low activity in the shale patch will soon translate into output declines, which would pull overall production numbers down.

WTI traded just above $42 ahead of the official inventory data and slipped below after the bigger than expected gasoline build…

“Risk assets and oil will reset higher, not because current and short-term conditions will change, but because the expectations around the path to economic and oil demand recovery will change,” said Harry Tchilinguirian, head of commodity-markets strategy at BNP Paribas SA.

Amnon Free Press:  Republican Incumbent Wins Alaska Senate Race, Clenching 50 Senate Seats For GOP

As reported by ZeroHedge News. Continue reading this article at ZeroHedge News

All news text, graphics, videos and multimedia content remain the copyrights of the credited original article publisher, in this case - ZeroHedge News

Amnon Free Press is an American conservative news aggregator and publisher with a mission to publish the right news for the right American.

Contact Information: admin (at) amnonfreepress dot com