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Oil prices have traded in a volatile range overnight as API reported a big crude draw, and then President Trump announced 25% additional tariffs on India due to their oil purchases from India.

“The pressure on India to displace Russian barrels continues, and there are no signs of either the US or India backing down,” said Keshav Lohiya, founder of consultant Oilytics.

All eyes now on the official data to see if it confirms the big crude draw from API...

API

• Crude -4.2mm

• Cushing +1.7mm

• Gasoline -900k

• Distillates +1.6mm

DOE

• Crude -3.029mm

• Cushing +453k

• Gasoline -1.323mm

• Distillates-565k

After a big build the prior week, Crude stocks fell last week (confirming the API report). Stocks at the Cushing Hub rose for the 5th straight week while Gasoline inventories fell for the 3rd week in a row...
 

Source: Bloomberg
 

Total US commercial crude stocks fell for the 3rd week in the last 4, even with the addition of 235k barrels to the SPR...
 

Source: Bloomberg
 

US Crude production remains just off record highs even as the rig count continues to tumble...
 

Source: Bloomberg
 

WTI Crude prices held their losses from the India tariff news but remain higher on the day...
 

Source: Bloomberg
 

Oil has edged lower in recent sessions following a three-month run of gains, with traders weighing headwinds to growth in the US that may hurt energy demand, as well as moves by OPEC+ to roll back output curbs. Last weekend, the alliance agreed to hike production again in September, boosting concerns that global supplies will run ahead of consumption this half.

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