With WTI/RBOB prices tumbling to 7-month lows intraday (not helped by Libya production), oil bulls hope for a bounce after API is not coming true despite a bigger than expected crude draw, both gasoline and distillates saw notable builds and oil prices could not make their mind up.
API
- Crude -2.72mm (-1.2mm exp)
- Cushing -1.269mm
- Gasoline +346k (+500k exp)
- Distillates+1.837mm
At a time when Gasoline demand should be rising and inventories dropping - neither happened the last two weeks and once again, according to API, gasoline built (as did distillates)...
Libya pumps most oil since 2013 as Wintershall fields resume (and Nigeria production rising) did not help...but the machines could not make their minds up after the API data...
“Obviously, the sentiment in the market right now is negative and bearish,” Michael Loewen, a commodities strategist at Scotiabank in Toronto, said by telephone.
“OPEC has all of these barrels off the market right now, but what happens in 2Q when OPEC is expected to either lift or extend supply caps - There’s lots of concern around that”