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WTI/RBOB prices soared today on the heels of Iran oil sanction threats from Washington. With expectations of further draws (after last week's big surprise draw), API reported a massive 9.22mm barrel draw - the biggest since Sept 2016.

 

API

  • Crude -9.22mm (-3mm exp) - biggest draw since Sept 2016

  • Cushing -1.741mm (-1.3mm exp)

  • Gasoline +1.152mm

  • Distillates +1.75mm

Following last week's surprising large crude draw (but product builds) API reported a 9.22mm crude draw - which if it holds for EIA, will be the biggest draw since Sept 2016...

 

WTI topped $70 - highest in a month - after US sanction threats against Iran trumped Saudi output increase headlines. Heading into the API print, WTI was flatlined at around $70.50, before kneejerking higher on the API print

“Even if Saudi Arabia is ramping up, there’s enough concern in the market about production shutdowns, whether it’s Canada, Libya, to hold these prices up,” said Rob Haworth, who helps oversee $151 billion at U.S. Bank Wealth Management in Seattle. “It’s a market that still has a bullish bias to it.”