WTI futures $80.46 up $2.26; Brent $86.83 up $3.80
From ZeroHedge:
Oil prices extended yesterday's gains this morning with WTI back above $80 after API reported inventories fell by almost 8 million barrels and further optimism of a rising demand outlook from China lifting Zero-COVID restrictions.
“Oil is starting to get its groove back and it looks like both supply and demand drivers could turn bullish for crude,” said Ed Moya, senior market analyst at Oanda Corp.
“If China’s Covid rules are slowly eased and OPEC stays the course, crude prices could rally another 5-10% here.”
Crude has recovered in recent days as EU discussions on a Russian price cap continue. Without the measures, companies will have no access to European or UK insurance when transporting the country’s crude, potentially risking supply disruption.
We note that while API reported a sizable crude draw, it also reported builds for gasoline and diesel stockpiles, which could indicate fuel demand has remained weak amid strong post-maintenance refinery production.
API
Crude -7.85mm (-2.49mm exp) - biggest draw since April 2022
Cushing -150k
Gasoline +2.85mm
Distillates +4.01mm
DOE
Crude -12.58mm (-2.49mm exp) - biggest draw since June 2019
Cushing -415k
Gasoline +2.77mm
Distillates +3.577mm
After API's reported draw in crude and build in products, the official data confirmed it and then some with the biggest crude draw since June 2019 and huge product builds...
....MUCH MORE (chart mania)
