Monday, 04 November 2024

WTI Spikes After Biggest Crude Draw In A Year


Oil prices briefly spiked after last night's API-reported big crude draw, but that reverted back lower fast. Overnight has seen a small roller-coaster with prices slipping during the US session and then a series of bad news data point in the US sparking a 'good news for Fed cuts' response in oil prices, holding just above green on the day.

The question is - was API's data fluke...

API

  • Crude -9.16mm - biggest draw since mid-Jan 2024

  • Cushing +404k

  • Gasoline +2.47mm

  • Distillates -740k

  • DOE

  • Crude -12.16mm - biggest draw since Jul 2023

  • Cushing +345k

  • Gasoline -2.21mm

  • Distillates -1.54mm

  • Nope. The official data confirms the huge crude draw last week (which we suspect was pre-emptive draws ahead of 'Beryl'

    Source: Bloomberg

    Adjusted for the 398k barrel addition to SPR, the 11.579mm barrtel draw was the largest since the last week of July last year...

    Source: Bloomberg

    Oil prices spiked on the big crude draw...

    Source: Bloomberg

    Even if crude prices ease a little, pump-prices are set to rise further...

    Source: Bloomberg

    Pouring more salt in President Biden's polling wounds.


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