Oil prices are down for a fourth session in a row this morning even as API reported a drop in US oil inventories and Trump reached a trade deal with Japan that imposes a 15% tariff on imports from Tokyo.
US Treasury Secretary Scott Bessent said he’ll discuss a potential extension of the trade truce with China during talks in Stockholm next week.
The discussions can now take on a broader array of topics, potentially including Beijing’s continued purchases of “sanctioned” oil from Russia and Iran, he said.
“We are racing towards the Aug. 1 deadline for reciprocal US tariffs,” said Harry Tchilinguirian, group head of research at Onyx Capital Group.
“Japan deal done, now it is a question of if they pull a rapid deal out of the bag for the EU.”
Will the official data line up with API’s reported drawdown?
API
-
Crude -577k
-
Cushing +314k
-
Gasoline -1.2mm
-
Distillates +3.5mm
DOE
-
Crude -3.169mm
-
Cushing +455k
-
Gasoline -1.738mm
-
Distillates +2.931mm
The official data showed a much larger crude draw than API, but the rest of the data lined up…
Source: Bloomberg
The total commercial crude inventory drawdown was made worse by the second week in a row of SPR drawdowns…
Source: Bloomberg
US Crude production tumbled by over 100k b/d last week to its lowest level since January as the rig count continues to plunge…
Source: Bloomberg
WTI extended losses after the data
Source: Bloomberg
So much for drill, baby, drill!
Tyler Durden
Wed, 07/23/2025 – 10:41
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Author: Tyler Durden
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