Mixed Inventory News Puts Downward Pressure on Markets
On Tuesday, WTI crude gave back most of Monday’s gains on little headline news and fears of an uptick in coronavirus cases globally. The market is down in early trading this morning on mixed inventory news.
The API signaled another build in crude inventories yesterday. The larger-than-expected rise in oil stocks put downward pressure on oil markets. Large draws in products offset the bearish crude news. Even in the face of a second wave of coronavirus cases, demand for products seems to be increasing as personal freedoms and travel return. Product prices, however, continue showing downward pressure this morning even as demand for products seems to be increasing.
The API’s data last night:
The API reported a build for crude of 1.7 MMbbls versus an expected build of 0.3 MMbbls. At Cushing, stocks decreased by 0.3 MMbbls. The API reported that distillates had a decrease in stocks. Gasoline also had a fall in inventories. The EIA will report numbers later this morning.
Crude prices are down this morning. WTI Crude is trading at $40.04, a loss of 33 cents.
Fuel is down in early trading this morning. Diesel is trading at $1.1978, a loss of 0.5 cents. Gasoline is trading at $1.2793, a loss of 2.0 cents.
This article is part of Daily Market News & Insights
Tagged: API, coronavirus, inventory
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