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WTI/RBOB Extend Gains After Major Gasoline, Distillate Draws

WTI advanced to the highest level since April today amid OPEC considering an extension of output caps, and extended gains after API data despite a surprise build in crude. RBOB gained on a much bigger than expected gasoline draw (-5.7mm vs +1.7mm exp).

 

API

  • Crude +519k (-3mm exp)
  • Cushing -55k
  • Gasoline  -5.753mm (+1.7mm exp)
  • Distillates -4.949mm

Last week's DOE data confirmed the trend of gasoline builds and crude draws, but if API is correct that normalization trend just ended...

 

WTI and RBOB both rallied notably today ahead of API and extended gains after...

“People are bullish because they think that U.S. inventories are starting to rebalance and that crude exports will help bring them down,” says Michael Lynch, president of Strategic Energy & Economic Research.