Oil prices plunged today as Trump and Pompeo defused some tensions with Iran and geopolitical risk premiums were squeezed out suddenly.

“Bullish catalysts are in short supply,” analysts at London-based broker PVM Oil Associates Ltd. said in a note to clients.

“The Gulf Coast of Mexico hurricane premium is fading as offshore operations in the region resume. At the same time, the U.S. shale engine continues to give oil bulls a sleepless night.”

API

• Crude -1.401mm (-3mm exp)
• Cushing -1.115mm
• Gasoline -476k
• Distillates +6.226mm - biggest build since Jan 2019

After last week's big crude draw (the 4th week in a row), expectations were for another sizable draw but API reported a smaller than expected 1.4mm draw. Also, a major distillates build weighed on sentiment.

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WTI bounced back up to around $58 ahead of the API print but slipped lower after the smaller than expected draw...

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