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RECENT

WTI Drops Back Below $60 After Surprise Crude Build

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.”

API

  • 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

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