Following last week’s record build in crude inventories, API reported a bigger than expected crude build this week (+4.40mm vs +2mm exp), but the huge draw in gasoline was the most notable (-3.6mm vs -1.5mm exp) as we suspect Colonial pipeline fallout affected levels. Distillates also saw the 7th consecutive draw (-4.3mm). WTI’s initial reaction to the crude build was lower but the product draw sent priecs higher.
Crude +4.40mm (+2mm exp)
Cushing +156k (+300k exp)
Gasoline -3.6mm (-1.5mm)
Following last week’s biggest crude inventory build ever, crude built again but products saw a major drawdown…
Saudi officials along with their allies in the Gulf travelled to Moscow this week to meet Russian counterparts and proposed a 4% cut from the Gulf members (not all of OPEC). The report is from Reuters, who cites three sources.
The formal proposal will be made this week in Vienna at a committee meeting.
Meanwhile, OPEC is likely to reject Iraq’s request for an exemption, according to the same report.
On its own it sounds bullish but the market is worried about Iraq.