WTI Holds Losses After Big Product Draws
said Mr. Summers, a former Treasury secretary. Mr. Summers is saying that there is an economic slowdown happening, but the location is unknown.
After rebounding last night, oil prices are now at an all-time low.
API-reported product inventory drawdowns
As last night's China macro data did not suggest a strong opening, and Europe's banks joining the systemic crash freight train does not help sentiment as oil is priced alone in pricing an impending recession for now.
"The energy complex seems to be connecting the dots between recent banking problems and a possible recession,"
Ritterbusch and Associates, an oil-consulting company, told clients Tuesday.
The EIA also stated that global oil markets are struggling with a surplus because of Russian production, which defies forecasts of a slump and fuel demand slowly picking up.
According to the agency, major economies are advised that the world's oil supply should be sufficient to meet demand for the first half year.
"Much of the overhang in supply is due to Russian barrels racing for new destinations.
Are we likely to see another US crude oil build, as API reported last night
Crude +1.16mm (+100k exp)
Gasoline -4.59mm (-1.2mm exp)
Distillates -2.89mm (-600k exp)
Crude +1.55mm (+100k exp)
Cushing -1.916mm -- largest draw since May 2021
Gasoline -2.061mm (-1.2mm exp)
Distillates -2.527mm (-600k exp)
The US Crude stock rose last week, but Products and Cushing saw significant drawdowns...
The DOE data's coveted 'adjustment coefficient' is now back at record levels...
The total crude oil stocks are at their highest level since May 2021...
The inventory levels at Cushing hub have risen from their two-year highs...
Last week, crude oil production in the United States was flat as rig counts tend to decline...
WTI traded at just $69 less than the official data, and then rose modestly thereafter...
Pickering Energy Partners' chief investment officer Dan Pickering said that the final path of central bankers on interest rates could have huge implications for the oil patch.
"Somewhere out there's an economic slowdown."
Mr. Pickering stated.