Yesterday oil fell after reports that Russia wasn’t interested in further cuts. Novak is now basically confirming that. He said the pact with OPEC is working and that there is no immediate need for extra steps.
He put the onus on OPEC to do more if Nigerian and Libyan production rose.
Having broken its win-streak with the biggest drop in 4 weeks today following Russia comments, crude prices hovered around $45 as API reported a massive 5.8mm barrel crude draw (most since 2016) and 5.7mm gasoline draw (most in 4 months).
Crude -5.764mm (-2.5mm exp)
After last week’s product draws (and small crude build), we suspect the effects of tropical depression Cindy may be impacting the dataas the draws are very significantly away from expectations…
Russia “pretty much threw cold water” on rumors of additional cuts, Bob Yawger, director of the futures division at Mizuho Securities USA in New York…
Prices dipped after the API-reported, running stops, an then ripped back higher…
The US major stock indices are ending the day with mixed results.
The Dow is the dog, as it ends near unchanged levels (down -1.1 point or -0.01%.
The S&P is ending the day with gains of 3.53 points or +0.15%
The Nasdaq index was the big winner rising by 40.79 points or 0.67%.
Although the major indices ended with mixed results, there were some individual stocks that got hammered
Tesla’s production numbers were less than expectations and that prompted Goldman to cut their year end estimate from $190 to $180. That is going out on a limb with the stock trading at $327 at the close. That price is down $25 or -7.24% on the day. Do you buy some out of the money puts in case they are right? $180 is still a long way away….
The auto parts stores were also hammered after O’Reilly Auto Parts pre-announced negatively. The stock fell -18.89% or -41.64 to $178.77. Autozone fell close to -10% on the day and Advanced Auto parts fell by -11.15%. UGLY day for that sector.