Oil Prices Leap Higher After API Reports Huge Crude Draw

The American Petroleum Institute (API) reported a huge draw of 10.23 million barrels in United States crude oil inventories, compared to S&P Global Platts survey of analysts who expected a draw of only 2.5 million barrels for the week ending July 21. Gasoline inventories, on the other hand, bucked analyst traditions with a 1.903-million-barrel build for the week ending July 21, compared to analyst expectations that inventories for the fuel would fall by 1.25 million barrels. Crude prices were up over 3 percent on Tuesday afternoon on expectations…

WTI Jumps Above $48 After API Inventory Report Shows Huge Crude Draw

The recent trend of inventory draws (in crude and products) has supported higher Brent and WTI prices (the latter testing $48 today) despite surging production. API reported more of the same with a much larger than expected draw (-10.2mm vs -3mm exp), sending WTI above $48. All was not perfect in the report however as gasoline saw an unexpected build.

 

API

  • Crude -10.2mm (-3mm exp) – biggest draw since Sept 2016
  • Cushing  -2.568mm (-1mm exp)
  • Gasoline  +1.9mm (-1.8mm exp)
  • Distillates -111k

Gasoline surprised with an unexpected build in inventories but the massive crude draw (largest since Sept 2016) and a reduction in stocks at Cushing helped send crude proices higher…

 

WTI traded around $48 into the API print – having ripped higher the last two days after Saudi ‘whatever it takes’ comments – and blew through $48 on the API print…

“They have chased the bears back into the woods. Sentiment in the market is mildly bullish,” James Williams, an economist at London, Arkansas-based energy-research firm WTRG Economics,

The post WTI Jumps Above $48 After API Inventory Report Shows Huge Crude Draw appeared first on crude-oil.news.

WTI Jumps Above $48 After API Inventory Report Shows Huge Crude Draw

The recent trend of inventory draws (in crude and products) has supported higher Brent and WTI prices (the latter testing $48 today) despite surging production. API reported more of the same with a much larger than expected draw (-10.2mm vs -3mm exp), sending WTI above $48. All was not perfect in the report however as gasoline saw an unexpected build.

 

API

  • Crude -10.2mm (-3mm exp) – biggest draw since Sept 2016
  • Cushing  -2.568mm (-1mm exp)
  • Gasoline  +1.9mm (-1.8mm exp)
  • Distillates -111k

Gasoline surprised with an unexpected build in inventories but the massive crude draw (largest since Sept 2016) and a reduction in stocks at Cushing helped send crude proices higher…

 

WTI traded around $48 into the API print – having ripped higher the last two days after Saudi ‘whatever it takes’ comments – and blew through $48 on the API print…

“They have chased the bears back into the woods. Sentiment in the market is mildly bullish,” James Williams, an economist at London, Arkansas-based energy-research firm WTRG Economics,

The post WTI Jumps Above $48 After API Inventory Report Shows Huge Crude Draw appeared first on crude-oil.news.

Abbas says suspension of Israeli contacts to continue

Palestinian President Mahmoud Abbas on Tuesday said the suspension of all contacts with Israel, including security coordination, will continue unless the situation in Jerusalem and Al-Aqsa returns to normal. “All Israeli measures in Jerusalem must be removed and the situation in Al-Aqsa should return to how it was before 14 July,” Abbas said at the beginning of a meeting with the Palestinian leadership in Ramallah. “All the Israeli measures before 14 July are supposed to be removed immediately,” he said, adding: “We will monitor what happened from that day to the present day and we will act accordingly.” Anger has spread across the West Bank since last week when Israel shut the Al-Aqsa Mosque. The mosque was reopened after two days, […]

Trump: Cohn, Yellen Are Top Fed Chair Contenders, “Two Or Three Other Candidates”

In a continuation of the same WSJ interview, in which president Trump once again slammed Jeff Sessions, Trump laid out his current thoughts on who, if anyone, will replace Janet Yellen when her terms runs out next February. That said, Trump did not reveal much, saying that he is considering renominating Yellen as Fed chair but also said his econ adviser Gary Cohn (who was present in the interview) is a top candidate for the position.

Trump first expressed his appreciation of Yellen several months ago, also to the WSJ, surprising market who had expected Trump’s animosity against Yellen, revealed during the presidential campaign, would persist. It did not. Trump reiterated that he thinks Yellen is doing a good job and he has “a lot of respect for her,” and said she is still in the running to serve a second four-year term as leader of the central bank.

“I like her; I like her demeanor. I think she’s done a good job,” he said. “I’d like to see rates stay low. She’s historically been a low-interest-rate person” Trump added, reneging on yet another of his campaign promises.

Trump also confirmed recurring rumors that Cohn is the top outside candidate, saying the former Goldman COO is also the top candidate to replace Yellen.

“He doesn’t know this, but yes he is,” he said, when asked if Mr. Cohn, who was present during the interview, was a candidate for the job. “I actually think he likes what he’s doing right now.”

Actually, Cohn was quite aware that “he is.” And, in an especially delicious phrasing by the WSJ, this became quite apparently:

Mr. Cohn and other White House officials have said he is focused on his current job. But former colleagues have said he has developed an appreciation for the power of the Fed during his long career on Wall Street, and for the central bank’s relative independence during his current stint in Washington.

All one can respond to that is “LOL.”

While the above was widely known, the only new information in the WSJ article was Trump said there are “two or three” other contenders in the mix, but declined to name any other potential candidates and said he probably wouldn’t announce a nominee until the end of the year. “It’s early to make the decision.” He said he expected the confirmation process for the Fed job would move quickly.

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