On Tuesday, WTI Crude closed up sharply on news of a European Union stimulus deal and hopes for a coronavirus vaccine in the near future. This morning the market is giving back some of those gains in early trading as fears of a resurgence in lockdowns retakes precedents.
Also putting downward pressure on markets today is bearish inventory news reported by the API last night. A surprise build of 7.5 MMbbls has investors concerned once again about supply and demand dynamics amid this pandemic. If confirmed by the EIA later this morning, this would be the biggest inventory increase since May.
The API’s data last night:
The API reported a surprise build for crude of 7.5 MMbbls versus an expected draw of 2.1 MMbbls. At Cushing, stocks increased by 0.7 MMbbls. The API reported that distillates had a decrease in stocks in line with expectations. Gasoline inventories fell more than expected. The EIA will report numbers later this morning.
Crude prices are down this morning. WTI Crude is trading at $41.36, a loss of 56 cents.
Fuel is down in early trading this morning. Diesel is trading at $1.2605, a loss of 2.0 cents. Gasoline is trading at $1.2666, a loss of 1.3 cents.