API draw
Posted: Thu Jul 06, 2017 8:47 am
API Reports 5.8 Million Barrel Inventory Draw, WTI Oil Price Recovers Ground
"...The latest American Petroleum Institute (API) inventory data for the week ending June 30th recorded a draw of 5.76 million barrels after the unexpected 0.85 million barrel build last week.The day was released one day later than normal due to Tuesday’s Independence Day holiday and markets were expecting a draw of around 2.5 million barrels for the week.
There was initial confusion surrounding the fuel data with several sources appearing to repeat the data from last week with a significant gasoline build.
Gasoline, however, was then reported as a heavy draw of 5.7 million barrels on the week following a build of 1.35 million barrels previously. Distillate registered a build of 0.38 million barrels after the build of 0.68 million barrels previously.
The sharp draw in gasoline, if confirmed, would be important in underpinning confidence after a run of weekly builds.
Cushing registered a draw of 1.40 million barrels which was the 13th successive draw.
Oil prices declined sharply on Tuesday with heavy selling interest following a run of eight successive daily gains. From highs around $47.30 p/b on Tuesday, WTI retreated to lows below $45.00 p/b late in the European session on Wednesday.
There were no major fresh fundamental developments, but markets continued to fret over underlying supply conditions as Russia stated that deeper production cuts were not required.
Prices spiked lower at the release time with a drop towards $44.60, but there was a very rapid recovery to the $45.25 p/b area within the first few seconds after release and gains then expected to $45.45 p/b.
Thursday’s EIA inventory release will be monitored closely and the latest production data will be an important element after the surprise decline recorded last week. A strong recovery in production this week would renew fears surrounding rising US output which would undermine sentiment...."
Tx to Alain 1601:
"...The latest American Petroleum Institute (API) inventory data for the week ending June 30th recorded a draw of 5.76 million barrels after the unexpected 0.85 million barrel build last week.The day was released one day later than normal due to Tuesday’s Independence Day holiday and markets were expecting a draw of around 2.5 million barrels for the week.
There was initial confusion surrounding the fuel data with several sources appearing to repeat the data from last week with a significant gasoline build.
Gasoline, however, was then reported as a heavy draw of 5.7 million barrels on the week following a build of 1.35 million barrels previously. Distillate registered a build of 0.38 million barrels after the build of 0.68 million barrels previously.
The sharp draw in gasoline, if confirmed, would be important in underpinning confidence after a run of weekly builds.
Cushing registered a draw of 1.40 million barrels which was the 13th successive draw.
Oil prices declined sharply on Tuesday with heavy selling interest following a run of eight successive daily gains. From highs around $47.30 p/b on Tuesday, WTI retreated to lows below $45.00 p/b late in the European session on Wednesday.
There were no major fresh fundamental developments, but markets continued to fret over underlying supply conditions as Russia stated that deeper production cuts were not required.
Prices spiked lower at the release time with a drop towards $44.60, but there was a very rapid recovery to the $45.25 p/b area within the first few seconds after release and gains then expected to $45.45 p/b.
Thursday’s EIA inventory release will be monitored closely and the latest production data will be an important element after the surprise decline recorded last week. A strong recovery in production this week would renew fears surrounding rising US output which would undermine sentiment...."
Tx to Alain 1601: