Markets Recover from Very Large Product Builds

By Published On: January 16, 2020Categories: Crude, Daily Market News & Insights, Diesel, Gasoline

Crude is recovering from yesterday’s losses with modest gains in early trading Thursday morning.  WTI Crude is trading up this morning at $58.17, a gain of 36 cents.

Fuel is mixed but relatively flat in early trading this morning.  Diesel is trading at $1.8667, a loss of 1.1 cents.  Gasoline is trading at $1.6413, a gain of 0.5 cents.

On Wednesday, crude prices fell after the EIA reported a near 15 MMbbls total product build, rising to a four-month high and highlighting weak demand.  This fall was despite in the phase one trade deal, China agreeing to $50 billion of additional energy purchases over the next two years.

The EIA reported a larger -than-expected draw for crude of 2.5 MMbbls, versus an expected draw of 0.5 MMbbls.  At Cushing, the EIA reported a 0.3 MMbbls draw.  For the Market, the draws could not outweigh the very large builds in products.  The EIA reported distillates had a larger-than-expected build and gasoline also saw a larger-than-expected build.  These builds initially set off a sell-off, but by this morning, markets have recovered somewhat.

This article is part of Crude

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