After a strong run in the past few days, oil prices were sliding ahead of this morning’s official DOE inventory and production data (following last night’s 1.5mm barrel crude draw reported by API).
DOE
Crude -1.95mm
Cushing -18k
Gasoline -3.31mm
Distillates +624k
Crude stocks drew-down for the second week in a row and the drawdowns for Gasoline stocks extended to a 7th straight week…
Source: Bloomberg
Crude production was flat on the week…
Source: Bloomberg
WTI extended the morning’s losses despite the crude and gasoline draws…
Today’s pullback comes after crude prices were pushed into overbought territory and algorithms reached their maximum long positions. With the tailwind of the automated buying diminishing, momentum for crude may be poised to flip to the downside, said Daniel Ghali, a commodity strategist at TD Securities.
However, it does little to slow the inevitable rise of prices at the pump…
Get back to work Mr Biden.
