This should be the set-up for lower prices into September with major support between $34 and $35.*
And OPEC chatter being the wildcard.
Front futures $41.93 down 0.84. Gasoline is down 2 1/2%.
Following last night's unexpected build in crude (and Cushing) inventories, DOE data confirmed the surprising build in Crude (+1.05mm - 3rd weekly rise) and Cushing's 1.2mm build is the most in 3 months. Gasoline inventories drewdown less than API reported but Distillates saw an unexpected build. Crude is whipsawing around as the bullish gasoline draw (and production cut) battles with bearishly unexpected builds in Crude, Cushing, and Distillates.
- Crude +2.09mm (-1.5mm exp) - biggest in 3 months
- Cushing +1.2mm (-1.3mm exp) - biggest in 3 months
- Gasoline -3.9mm (-1.3mm exp)
- Distillates -1.5mm
This is the 3rd weekly crude build in a row and Cushing's biggest build in 3 months... but all eyes are on the Gasoline draw (even though it is less than the API print)...MORE
- Crude +1.055mm (-1.5mm exp)
- Cushing +1.16mm (-1.3mm exp) - biggest in 3 months
- Gasoline -2.8mm (-1.3mm exp)
- Distillates +1.15mm
One of these times oil will get through that $34.00 area that has been resistance but until it does we are still betting lower. There is a lot of oil around....
... We've been babbling about "$34-34.50" since Jan. 27.