- WTI holds in positive teritory on trade deal optimims and OPEC+.
- US crude supplies rose by 4.7 million barrels for the week ended December 13th.
The price of a barrel of oil is elevated on the $60 handle at $60.54 at the time of writing having travelled from a low of $60.40 to a high of $60.59. Bulls are on control following the euphoria in markets post the trade dal announcements between the US and China, coupled with the OPEC+ accord agreed earlier in the month.
Meanwhile, the American Petroleum Institute reported late Tuesday that US crude supplies rose by 4.7 million barrels for the week ended December 13th, according to sources. The API data also reportedly showed stockpile increase of 5.6 million barrels for gasoline, while distillate stocks grew by 3.7 million barrels. Inventory data from the Energy Information Administration will be released Wednesday at 10:30 a.m. Eastern Time.
We now await the EIA data which are expected to show crude inventories down by 2.5 million barrels last week and increases of 2.4 million barrels for gasoline and 600,000 barrels for distillates.
WTI buoyed by the risk-on tone developing across global assets
Meanwhile, energy markets remain buoyed by the risk-on tone developing across global assets in the aftermath of the interim trade deal, analysts at TD Securities explained:
“Crude oil’s correlation to global risk assets has been deteriorating over the past few months, but it is now placing a bid under crude. The reflation trade is being reflected in energy markets as participants hope that the trade deal will reduce the expected surplus for the next few quarters, as demand gets a boost from its low expectations. At the same time, OPEC+ delivered a ‘beautiful surprise’, which combined with expectations of lackluster supply growth from US shale, has sent WTI crude barreling through $60/bbl. In response, CTA funds continue to load up on energy markets with WTI crude and heating oil still expected to see a buying program ensue for the next few days.”
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