WTI had coiled up today, closing lower, ahead of tonight's API data. After last week's API build and small DOE draw, hope was high that the trend of larger draws would continue and it did with API reporting a larger than expected crude draw (-7.839mm vs -2.2mm exp). However, a susprise build in gasoline inventories took the shine off and the machines could not decide whether to buy or sell.
API
- Crude -7.839mm (-2.2mm exp)
- Cushing +319k
- Gasoline +1.529mm (-1.5mm exp)
- Distillates -157k
Last week's much smaller than expected draws across the board was followed by an algo-confusing big draw in crude and surpriose build in gasoline this wekl...
WTI tumbled at the NYMEX close, testing stops below $49 but hovered there into the API print...then kneejerked higher but then gasoline saw a surprise build and the gains disappeared...
"There just isn’t enough confidence in OPEC yet to get us above $50. That’s the big problem," James Williams, economist at WTRG Economics in London, Arkansas, says.
"We’re in the last big month of the driving season and the question is, can OPEC balance the lower fall and winter demand?"