Oil pries continues to churn sideways since tumbling in the big risk-off slump from DeepSeek on Monday as traders weigh the possible fallout from President Donald Trump’s planned tariffs on major US crude supplier Canada and other countries and reports OPEC will evaluate potential changes to America’s energy policy.
“Crude prices keep dancing to the rhythm of Trump’s tariff orchestra, with Canada tariffs in focus as they go into effect on Saturday,” said Ole Hansen, head of commodities strategy at Saxo Bank. Wednesday’s price decline represents “a sour sentiment across an overall rangebound market,” he added.
API
Crude +2.68mm
Cushing +144k
Gasoline +1.89mm
Distillates -3.75mm
DOE
Crude +3.46mm
Cushing +326k
Gasoline +2.96mm
Distillates -4.99mm - biggest draw since March 2022
After 9 straight weeks of draws, crude stocks built last week (by 3.5mm barrels). Gasoline stocks rose for the 11th straight week while Distillate stocks plunged by the most since March 2022...
Source: Bloomberg
US crude production plunged last week, tumbling 237k barrels/day...
Source: Bloomberg
Including the 248k barrel addition to the SPR, total US crude stocks jumped by 3.71mm barrels - the biggest build since October 2024...
Source: Bloomberg
WTI remains lower on the day after the DOE data...
Source: Bloomberg
It appears the cold-weather snap was the big driver of crude production's decline as well as Distillates drawdown.
