WTI crude extended recent gains, hovering around $60 - setting the stage for its best quarter since 2002 - ahead of the API inventory report that was expected to show a draw after three draws in the last four weeks.
“We’re back in rally mode,” said John Kilduff, partner at Again Capital LLC, a New York hedge fund focused on energy.
“We’re seeing a steady supply decline that’s getting us back to $60 and everyone is trying to figure out the fallout from the refinery snags in Houston and the disruption in the Houston Ship Channel.”
Crude +1.93mm (-3mm exp)
Cushing +688k (+300k exp)
Gasoline -3.469mm (-3mm exp) - 5th draw in a row
Distillates -4.278mm (-500k exp)
Amid disruptions to refiners along the Houston Ship Channel, expectations for a 4th draw in 5 weeks were dashed as API reported a 1.93mm build...
However, the notable draws in the product side took the bearish slant of price reaction