Bearish inventory news is driving markets lower. WTI Crude is trading at $54.36, a loss of 70 cents.
Fuel is down in early trading this morning. Diesel is trading at $1.8965, a loss of 1.7 cents. Gasoline is trading at $1.6593, a loss of 0.5 cents.
On Wednesday, the EIA reported a larger-than-expected build in crude stocks that put downward pressure on markets. Crude pared some of its losses late in the day on bullish news of a Keystone Pipeline spill. No information was available as to when the pipeline would be back on line. This news, however, was overshadowed by worries about a possible delay in resolving the US-China trade war. Prices were down over 1% yesterday.
The EIA reported a larger-than-expected crude build of 5.7 MMbbls versus an expected build of 0.5 MMbbls. At Cushing, they reported a sixth straight build of 1.6 MMbbls. Diesel drew 1.0 MMbbls versus an expected 2.8 MMbbls expected draw. Gasoline had a 3.0 MMbbls draw versus an expected draw of 2.4 MMbbls.
As a sign of Brazil’s growth in global crude markets, OPEC has extended an informal offer for it to join OPEC+. Brazilian President, Jair Bolsonaro, stated that he’d happily accept the offer. The timing comes when oil companies such as Exxon, Shell, and others are set to bid for Brazil’s deep-sea reserves in November.