Oil prices are chopping sideways (to modestly higher) for the second day in a row as traders weighed the 'dark fleet' transits with renewed tensions in the Middle East further clouding the outlook for flows through the vital Strait of Hormuz.
“A combination of the escalation between the UAE and Iran, coupled with a market increasingly pricing a ‘closed for longer scenario,’ keeps oil and refined products supported,” said Arne Lohmann Rasmussen, chief analyst at Global Risk Management.
Combine that with the ever-decreasing poll of global inventories (to soak up any supply shortage)...
...and every incremental report on supply and production matters (especially for refined products).
API
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Crude -328k
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Cushing -1.4mm
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Gasoline +1.1mm
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Distillates -2.8mm
DOE
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Crude +4.41mm (-707k exp)
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Cushing -1.314mm - biggest draw since mid-June
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Gasoline +688k
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Distillates -1.53mm
After last week's massive crude inventory build, expectations were a calmer week (API showed a small draw). The official data showed a sizable build (4.41mm barrels) for the 3rd week in a row while Cushing stocks slipped back. Products were mixed with Distillates drawing down for a 3rd week...
Cushing stocks remain near 'tank bottoms'...
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