WTI Rebounds After Big Surprise Crude Draw; SPR Grows For 3rd Week

The oil prices fell further this morning, to a one-month low. This was after the US and European PMIs were dreadful. They added fuel to the slowdown.

Global demand fears

All of this adds up to a heightened concern about the economy.

Last night's API reported showed a surprising gasoline inventory increase

The end-product market is lagging.

Exports of Iranian crude oil have soared to 2.2 millions barrels per day in the last month, adding to the bearish mood.

While they are still trying to find a solution, Turkey and Iraq held a series of intense talks to restart an important oil pipeline.

API

Crude-2.4mm (-2.9mm exp)

Cushing -2.21mm

Gasoline +1.9mm (-500k exp)

Distillates -150k (+200k exp)

DOE

Crude -6.134mm (-2.9mm exp)

Cushing -3.13mm is the biggest draw since October 2021

Gasoline +1.468mm (-500k exp)

Distillates +945k (+200k exp)

Last week, product stocks increased unexpectedly. However, inventories at Cushing's hub plummeted by the largest amount since October 2021.

Crude stock drawdown was 6.1mm barrels, more than twice the expectations ....

Source: Bloomberg

Cushing stocks have fallen to their lowest levels since January 2023.

Source: Bloomberg

The Biden administration'refilled the SPR' for the third week in a row - adding 594k barils...

Source: Bloomberg

The US crude oil production is still near the pre-COVID levels despite the decline in rig count.

Source: Bloomberg

WTI traded just below $79 before the official data was released - at a one-month low...

The big crude draw was modestly rebounded...

Bloomberg has reported that

Global oil inventories have plummeted sharply in the last month, already at a seasonal low of six years.

As OPEC+ production reductions and resurgent demands start to impact the supply of crude.

According to Kpler, global onshore stocks were at 3.37 billion barrels by Wednesday. This is a drop of 60 million barrels compared to a month ago. Since Aug. 15, they have somewhat recovered.