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Tue, 06/09/2020 – 16:38
Oil prices managed gains today (despite equity market weakness) on various ‘not-terrible’ headlines from BSEE (more gulf rigs still offline due to Cristobal), Nigeria (struggling to sell its crude so less supply hitting market), New Jersey lockdown lifted (more demand), and EIA’s outlook still hoping for a rebound in demand in Q3.
Inventories will once again be the main focus with hopes that the surge in product inventories was a blip due to Cristobal.
Crude +8.42mm (-1.2mm exp)
Gasoline -2.913mm (-200k exp)
Distillates +4.271mm (+2.9mm exp)
US crude inventories were forecast to drop for the second week but API reported a surprising (and large) 8.42mm barrel build…
WTI was trading back below $39 ahead of the API print and slid modestly after the data…
We will have to wait for confirmation from the official data tomorrow but this is a notable build in the face of hope for a draw.