A build at Cushing is putting downward pressure on prices this morning. WTI Crude is trading at $55.34, a loss of 20 cents.
Fuel is mixed this morning. Diesel is trading at $1.9544, a fractional loss. Gasoline is trading at $1.6975, a gain of 1.2 cents.
On Tuesday, crude prices fell after mixed news from OPEC+. Russia indicated that it was too early to talk about deeper output cuts, while Saudi Arabia said it was willing to do whatever it took to balance the market, including making deeper production cuts. These mixed signals from OPEC+ and an inventory build at Cushing seem to be pushing prices lower in early trading on Wednesday.
The API’s data last night:
The API reported a small draw for crude of 0.7 MMbbls versus a small expected build of 0.5 MMbbls. At Cushing, stocks rose for the sixth week in a row with a build of 1.2 MMbbls. Markets seem to be moving lower this morning based upon inventory news at Cushing. Products experienced draws with distillates experiencing a smaller-than-expected draw and gasoline experiencing a larger-than-expected draw. We await EIA numbers later this morning for confirmation of API data.
In trade news, a US administration official stated Tuesday that the US and China are continuing to work toward an interim trade agreement, but it may not be completed in time for US and Chinese leaders to sign next month.