WTI and RBOB have trended lower since last week's inventory data hit and today's API inventory prints (showing a decent crude draw but a relatively large gasoline build - biggest since January compared to DOE data) sparked some more weakness in both oil and gasoline prices.
- Crude -4.079mm (-500k exp)
- Cushing +2.048mm (+1.8mm exp) - biggest build since March
- Gasoline +4.19mm (+1mm exp) - biggest build since Jan
- Distillates -584k
After last week's surprise build in gasoline, things got a little worse this week with another major build, biggest since January (and restocking at Cushing, biggest since March)
WTI had drfted back from recent highs to hover around $50.50 which seems like a comfortable range for crude for now (even as RBOB has tumbled)... Both WTI and RBOB are extending losses after the API data but the move is small...
“We’ve rallied too fast too quickly, so the market’s basically given up a little bit of this,” Michael Loewen, a strategist at Scotiabank in Toronto, told Bloomberg.
Many market participants view the market as “I’m going to buy at $45 and I’m going to sell at $55 and I’m just going to rinse and repeat”