After the worst day for energy stocks in two weeks as crude turned negative amid reports that OPEC is said to be considering raising oil output, WTI rallied and RBOB kneejerked lower after API reported a smaller than expected crude draw and surprise gasoline build.
Crude -1.3mm (-1.9mm exp)
Cushing -822k (-250k exp)
The International Energy Agency has started discussions with major oil-producing countries about their ability “to make up the loss from Venezuela or elsewhere,” Executive Director Fatih Birol said in a Bloomberg Television interview.
But, analysts remain convinced that things are going to get tighter…
“The fundamental picture continues to show signs of tightening,” said Gene McGillian, market research manager at Tradition Energy. “The uncertainty on geopolitical issues is also contributing to the rally.”
But prices slid today into the API print…then diverged (WTI higher, RBOB lower) after,,,
We also note that Brent failed to hold above $80 again…