Oil prices are modestly higher this morning, erasing overnight losses on Trump's 'ceasefire extension' after Iran attacked three ships in the Strait of Hormuz.
While headline roulette continues to drive oil prices incrementally, this morning's inventory/supply data from DOE will provide some color on how the
Gasoline -4.57mm - 10th weekly draw in a row
Distillates -3.43mm - 4th weekly draw in a row
Crude stocks unexpectedly saw a build last week (after a draw the week before) as did Cushing inventories. However, on the product side, the sizable drawdowns continue...
Since the war started, Crude stocks have risen significantly, while gasoline inventories have seen non-stop draws...
Weekly US implied gasoline demand is holding up despite elevated prices.The 4-week moving average indicate a slight rise of 32,000 barrels per day, while the more volatile weekly data series ticked down by 33,000 barrels per day. Meanwhile, US average gasoline prices remain above $4 a gallon. It was near $3 a gallon right before the Iran war.
The crude inventory build was more than offset by a huge 4.14mm barrel drawdown from the SPR...
US crude production dipped once again...
Notably, total US oil product exports accelerated to a new record high last week...
Source: ZeroHedge News
