Despite geopolitical risks seemingly ebbing, WTI/RBOB rebounded today on hopes OPEC would extend output cuts and extended gains after API reported surprise draws across the entire energy space.
Additionally, Bloomberg points out that Alberta’s plan to cut crude and fuel shipments to British Columbia could ripple across the entire west coast of North America, causing pump prices to surge and shifting the flow of international crude.
- Crude -1.047mm (+650k exp)
- Cushing -1.015mm (-650k exp)
- Gasoline -2.473mm
- Distillates -845k
Inventory draws across the entire space…
WTI/RBOB prices had rebounded intraday heading into the API data and kneejerked higher as
“Some of the geopolitical risk we priced in last week because of the concerns about what was happening in the Middle East seems to be slowly ebbing out of the market, ” said Gene McGillian, a market research manager at Tradition Energy in Stamford, Connecticut. At the same time, “you’re also getting chatter that the OPEC members are considering extending the cuts. You should start to see some support soon.”