WTI managed gains today on recovery (record jump in US retail sales) and virus cure hopes (trumping outbreak resurgence fears) pushing WTI back to $38.
“China’s shuttering of Beijing’s schools is a significant setback to the country’s recovery from the Covid-19 virus, and it could be a real blow to the petroleum demand recovery outlook, which had been improving,” said John Kilduff, a partner at Again Capital LLC.
However, US crude inventories are expected to have fallen last week amid weather-related Gulf of Mexico production losses and a drop in imports.
Crude +3.857mm (-3.5mm exp)
Gasoline +4.267mm (-2.2mm exp)
Distillates +919k (+3.1mm exp)
Despite the expectations of storm-related drop in inventories, crude stocks unexpectedly rose last week. This is also the 11th straight week of distillates builds…
The lifting of some lockdown restrictions is primarily impacting gasoline consumption, not industrial diesel demand yet.
WTI hovered just above $38 ahead of the data, but dropped back below it after the surprise build…