Rising crude stocks are putting downward pressure on prices this morning. WTI Crude is trading at $52.95, a loss of 41 cents.
Fuel is down this morning. Diesel is trading at $1.9296, a loss of 1.3 cents. Gasoline is trading at $1.6069, a loss of 1.8 cents.
On Wednesday, crude prices rose on news from OPEC+ that they would continue to cut supply at their December meeting. In addition, optimism about a partial trade deal helped to lift markets after China announced it hoped to reach a phase one trade agreement with the US as soon as possible. However, the crude market is down in early trading on Thursday based upon a larger-than-expected build reported by the API.
The API’s data last night:
The API reported a larger-than-expected build for crude of 10.5 MMbbls versus an expected build of 2.9 MMbbls. At Cushing, stocks rose for the fourth week in a row with a build of 1.7 MMbbls. News of the crude build seems to be moving markets lower this morning. Gasoline and diesel had draws in line with expectations as reported by the API. The EIA report coming out later this morning will likely set the trading tone for the remainder of the week.
In bullish news from Europe, crude inventories drew almost 4 MMbbls last week. In addition, optimism for a Brexit deal reappeared as officials prepared to enter final discussions over the next two days.