WTI Rebounds After Gasoline Demand Jumps, Despite Crude Build
Oil prices are lower this morning, but well off the plunge lows (below $61 for WTI) seen ahead of the US cash equity open as01
and ongoing demand fears from India (and China) weighed on prices.
All eyes will be not only on the inventories but also on demand (as gasoline and diesel demand has shown new gains).
Crude +436k (-4.4mm exp)
Gasoline -1.617mm (+800k exp)
Distillates +655k (-1.3mm exp)
Crude +594k (-4.4mm exp)
Gasoline +85k (+800k exp)
Distillates -1.073mm (-1.3mm exp)
Analysts expected a 4th weekly crude draw (and were thrown by API’s unexpected build) but the official data also showed a build (albeit a modest 594k)…
Gasoline demand continued to recover to its highest since March 2020…
US Crude production remains “disciplined” still as rig counts and prices remain supportive…
WTI hovered just below $62 ahead of the official data release and held that rebound after the print.
Bloomberg Intelligence Senior Energy Analyst Vince Piazza says: U.S. refinery capacity utilization was 85% for the week ended April 9, a positive for gains in upcoming weeks as facilities prepare for the domestic summer-driving season. Vaccinated Americans may look to drive and fly more this summer, we believe, which should boost demand for oil and U.S. refined products… though global supply is expected to increase next month as OPEC+ boosts production.
Wed, 04/21/2021 – 10:37