Had to change the headline due to confusion on gasoline build, regret the error etc.
The front futures settled at $44.66 in the regular session, now a bit lower at $44.52 in the late session.
The front futures settled at $44.66 in the regular session, now a bit lower at $44.52 in the late session.
From Economic Calendar:
The latest American Petroleum Institute (API) inventory data recorded a build of 3.4mn barrels for the latest weekly data, compared with an expected build of around 0.3mn and the 1.3mn increase in stocks recorded last week. The data pushed oil prices lower as markets reacted to the higher than expected inventories and, in contrast to last week, there was no major price support from the components.
There was a build in Cushing stocks of 1.46mn barrels for the week, which was very close to the expected level after Monday’s Genscape data suggested a substantial build of 1.4mn barrels at the Cushing facility.
There was an unexpected build in gasoline stocks of 271,000 barrels compared with an expected 0.8mn barrel draw with distillates recording a draw of 1.36mn barrels, which was broadly in line with expectations. Gasoline prices have remained stronger this week, primarily due to the impact of firm crude prices, although demand has also remained at elevated levels and the gasoline build is a surprise....MOREA commenter at foreXlive asks:
Where is this oil coming from? Rigs are down huge, demand is up, yet more and more oil is building.And is answered:
Crude oil originates from ancient fossilized organic materials, such as zooplankton and algae, which geochemical processes convert into oil and comes from under ground...
