Oil prices decline today as the last few day’s rollercoaster continued after a hotter than expected PPI print, leaving WTI near nine-week lows.
Crude has been on a downward path since April, with the geopolitical risk premium from tensions in the Middle East largely evaporating. Refinery run cuts and narrowing timespreads have signaled a slightly softer market. Yet prices remain elevated for the year as OPEC and its allies restrict flows.
However, an OPEC report published Tuesday showed that OPEC+ members making extra output cuts pumped 568,000 barrels a day above their agreed limit last month. The alliance is widely expected to extend curbs at a meeting June 1.
API
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Crude -3.1mm (-1.1mm exp)
-
Cushing -601k
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Gasoline -1.27mm (unch exp)
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Distillates +349k (+300k exp)
API reported a bigger than expected crude draw (and stockpiles at the Cushing hub also declined). Products saw gasoline stocks drop while distillates built…
Source: Bloomberg
WTI was hovering just above $78 – around two month lows – ahead of the API print and rallied on the data…
“(The) focus is turning to the US CPI release on Wednesday which will be a make-or-break release for the Fed and guide its next policy move,” Saxo Bank noted.
Tyler Durden
Tue, 05/14/2024 – 16:40
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Author: Tyler Durden
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