Larger-Than-Expected Build Drives Market Lower

By Published On: October 31, 2019Categories: Crude, Daily Market News & Insights, Diesel, Gasoline

Bearish inventory news is driving markets lower.  WTI Crude is trading at $54.36, a loss of 70 cents.

Fuel is down in early trading this morning.  Diesel is trading at $1.8965, a loss of 1.7 cents.  Gasoline is trading at $1.6593, a loss of 0.5 cents.

On Wednesday, the EIA reported a larger-than-expected build in crude stocks that put downward pressure on markets.  Crude pared some of its losses late in the day on bullish news of a Keystone Pipeline spill.  No information was available as to when the pipeline would be back on line.  This news, however, was overshadowed by worries about a possible delay in resolving the US-China trade war.  Prices were down over 1% yesterday.

The EIA reported a larger-than-expected crude build of 5.7 MMbbls versus an expected build of 0.5 MMbbls.  At Cushing, they reported a sixth straight build of 1.6 MMbbls.  Diesel drew 1.0 MMbbls versus an expected 2.8 MMbbls expected draw.  Gasoline had a 3.0 MMbbls draw versus an expected draw of 2.4 MMbbls.

As a sign of Brazil’s growth in global crude markets, OPEC has extended an informal offer for it to join OPEC+.  Brazilian President, Jair Bolsonaro, stated that he’d happily accept the offer.  The timing comes when oil companies such as Exxon, Shell, and others are set to bid for Brazil’s deep-sea reserves in November.

This article is part of Crude


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