Oil prices rollercoastered overnight, rallying on the surpriseAPI-reported crude drawand then slumping during the EU session amid demand concerns (driven by the terrible vaccine rollout).
"The suspension [of AZN vaccines] will not do the bloc's economic and fuel recovery any favors,"said Stephen Brennock of oil broker PVM."The hope now is that Europe can get its sluggish vaccine rollout back on track."
Oil weakness was exacerbated by IEA's latest report that saida supercycle was unlikely, demand won't return to pre-pandemic levels until 2023and could peak earlier than previously thought.
After the prior two weeks of record-breaking swings in inventories, this last week is expected to show only modest changes, with crude stocks sitting at their highest since early December.
API
Crude -1.00mm (+400k exp)
Cushing
Gasoline -930k (-1.4mm exp)
Distillates +904k (-900k exp)
DOE
Crude +2.396mm (+400k exp)
Cushing -624k
Gasoline +472k (-1.4mm exp)
Distillates +255k (-900k exp)
Despite refinery utilization recovering from the weather chaos in Texas,crude stocks increased last week(significantly more than API and was expected).
US Crude production has yet to accelerate along with higher prices and more rigs...
Source: Bloomberg
WTI hovered around $64.50 ahead of the official inventory data and reversed its rebound on the print...
