The whole energy complex tumbled today (as the usd strengthened) amid the risk off rout, and extended losses after API reported an unexpectedly large crude build.
“Oil prices gained and now they’re testing this key resistance level” of the January high, said Hans Van Cleef, senior energy economist at ABN Amro. “We’re waiting for the inventory data to see if it can push prices higher. Markets expect them to remain little changed, so any surprise drop could do the trick.”
API
Crude +5.321mm (+850k exp)
Cushing +1.655mm
Gasoline -5.799mm
Distillates -2.23mm
The 4th weekly crude build in the last 5 – and much bigger than expected – but gasoline and distillates saw notable draws…
“It’s slowing the momentum just enough to stop us from making new highs right now,” said Phil Flynn, senior market analyst at Price Futures Group. Inventory data this week is “going to be critical for the mood of the market.”
Prices were heading south into the API print and kneejerked lower after-though RBOB’s draw is stabiliziung price action…
In China, oil futures for September delivery declined 1.7 percent to 426.4 yuan ($68) a barrel on Tuesday.
