Oil prices fell back from new two-month highs early on as (supply) fears over the impact of Hurricane Beryl eased, but (demand) expectations for heavy travel around the Fourth of July holiday in the U.S. on Thursday, however, helped to limit losses for oil.
However, Phil Flynn, senior market analyst at the Price Futures Group, told MarketWatch:
"Even without the storm, the markets are starting to price in a global oil supply deficit as the spreads are suggesting that the markets are already starting to tighten significantly."
And after last week's surprise crude and gasoline build, all eyes are back on the API data for a sneak peek...
API
Crude -9.16mm - biggest draw since mid-Jan 2024
Cushing +404k
Gasoline +2.47mm
Distillates -740k
After last week's surprise crude build, API reports a huge draw in crude inventories last week (possibly in preparation for 'Beryl'), but another sizable gasoline build...
Source: Bloomberg
WTI was trading around $83 ahead of the API print and spiked higher (to unchanged on the day) after the surprising large draw...
Even if crude prices ease a little, pump-prices are set to rise further...
Source: Bloomberg
Pouring more salt in President Biden's polling wounds.
