WTI Extends Gains Above $55 After Huge Crude Draw

After tumbling on trade talk doubts, WTI crude prices spiked back above $55 this afternoon after Russian Energy Minister Alexander Novak told reporters in Moscow that Russia is committed to complying with OPEC+ production-cut deal.

Additionally, an OPEC+ committee said it expects stockpiles to decline sharply in the second half of the year.

API

Crude -11.1mm (-2.25mm exp) - biggest draw since June
Cushing -2.4mm
Gasoline -349k
Distillates -2.5mm

After a brief period of small builds, Crude stocks have resumed their drawdowns, with API reporting a massive 11.1mm plunge in inventories. In fact, there were drawdowns across the board...

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“The resolution of the U.S.-China rift will take time,” said Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas SA in London.

“Economic uncertainty has not been lifted, which still leaves a fair degree of hesitancy in going long oil.”

WTI hovered around $55 ahead of the API print and spiked on the big draw, running to the pre-Trump highs from Friday...

(Click on image to enlarge)