WTI/RBOB prices spiked today on OPEC chatter about how well they are doing, and extended those gains after API data showed a surprise crude draw (3.25mm build expected) and bond gasoline and distillates saw draws.
Crude -2.739mm (+3.25mm exp)
Cushing +1.644mm (-200k exp)
After 6 of the last 7 weeks showing builds, crude inventories fell notably on the week
“The bottom line is, with oil at these prices, it’s hard to slow down the shale in the U.S.,” said Michael Corcelli, chief investment officer of hedge fund Alexander Alternative Capital in Miami. Activity in the oil patch is “out of control and you can see it in the output that we’re actually generating.”
The reaction was a swift rebound to the day's earlier highs...