WTI recap for 10.02.2016
As noted Crude Oil's price is susceptible to any change in OPEC tone, data dependent and... Yellen dependent. WTI opened at 29.86, made a rapid high toward 30.78 after EIA US weekly oil inventories data which came in as -754K vs +2850K and in details:
- Prior was +7792K
- Gasoline inventories +1258K vs +1000K exp
- Distillate inventories +1281 vs-1500K exp
- Prior distillate inventories -777K
- Inventories at Cushing +523K
- Production down 0.3% w/w, down 0.4% y/y
On the 9th February, The American Petroleum Institute (API) data showed:
- Oil inventory build of 2.4mln barrels for the week
- Cushing up 715K
- Gasoline up 3.1mln barrels
- Distillate +1.69 mln barrels
Oil made its run on the news about the slight production cut and then came in the reality check and Yellen's testimony.
Her more hawkish than dovish statement quickly turned Oil in-to the red again and from its high at 30.78, WTI tumbled down pretty fast to its low at 29.01 and closed at 29.18. Price is not anymore contained in the daily correction trend, so movement towards the bottom at 27.64 maybe accelerated even more now. There initially price may see some support and bounce off. Still any news from OPEC may change the pace as there were some statements that Saudis may agree on production cuts if Russia and non-OPEC members agree to as well. Hardly to believe...
Selling at the tops is a good opportunity to catch any knee-jerk down.