WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL January 15th, 2018

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL January 15th, 2018

by Joseph Rokop

U.S. oil prices settled higher for the fifth straight session on Friday amid optimism that OPEC-led cuts will slowly drain the world’s oil supply, thus, rebalancing the crude fundamental suite.

The WTI February contract settled at 64.30 on Friday, up 50 cents on the day. Due to MLK Day on Monday, the Nymex was closed here in the states, but in electronic trading, crude finished 51 cents higher to close the day at 64.81.

The Brent March contract settled at 69.87 on Friday, up 61 cents on the day. Like the WTI, Brent also rallied in electronic trading Monday, topping 70 dollars per barrel with an intraday high of 70.37. This recent rally marks the first time the front month Brent contract has been above the 70 dollar mark since December 2014.

The Brent/WTI front month arb has narrowed since the start of the year, as traders shrug off higher U.S. production numbers. The arb now sits at -5.55.

The RB February contract continues to rally hard, settling at 1.85 on Friday, finishing over 1.87 Monday. The HO February contract also rallied, settling at 2.09, finishing over 2.10 Monday.

As we turn the corner into the remainder of the week, here’s an inside look:

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL January 4th, 2018

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL January 4th, 2018

by Joseph Rokop

U.S. oil prices settled above 60 dollars per barrel last week, closing 2017 at new two and a half year highs. The WTI posted a 12 percent gain on the year, boosted by a moderate decrease in global supply and healthy increase in demand.

Brent crude, the global benchmark, posted a 17 percent gain on the year, spurred by supply cuts led by OPEC and Russia, along with an increase in Chinese demand.

The WTI February contract settled at 61.95 on Thursday, while the Brent March contract settled at 67.80. The Brent/WTI front month arb widened significantly last year, as Brent crude rallied harder on OPEC cuts as the WTI lagged behind due to an increase in U.S. production. The arb closed at 6.10, 115 cents off its yearly high of 7.25.

The RB February  contract rallied hard this year, settling at 1.80 on Thursday, with a yearly high of 1.86. The HO February contract also rallied, settling at 2.07, posting a new two and a half year high of 2.08.

According to (EIA), U.S. crude stocks decreased by a surprise -7.4 million barrels (-7.4M bbl) vs an expected draw of -5.1M bbls. The bullish crude draw was temporarily trumped by a large build in gasoline stocks of +4.8M bbls vs an expected build of +2.1M bbls.

Heating oil, or diesel stocks, also put a damper on the crude rally with a massive +8.9M bbl build vs an expected build of 2.2M bbl.

 

As we turn the corner into the week ahead, here’s an inside look:

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL December 11th, 2017

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL December 11th, 2017

by Joseph Rokop

U.S. Oil prices settled down roughly 1.7 percent last week, posting its largest weekly drop in two months. Traders fear that soaring U.S. output will undermine the efforts led by OPEC and Russia to tighten global production and bring the crude market into balance.

Crude futures rebounded slightly Friday, as traders eyed the supply and demand figures coming out of China, as well as the threat of a strike by a major Nigerian oil union.

The WTI January contract settled at 57.36 on Monday, up 67 cents on the day. In London, the new front month Brent February contract settled at 63.40, outpacing U.S. crude, up 120 cents on the day. The Brent/WTI front month arb expanded, with Brent trading at a 6.04 premium to the WTI.

The RB January contract rallied alongside crude, up 1.5 cents on the day, settling at 1.72. The HO January also popped, up 3 cents on the day, settling at 1.93.

According to the Energy Information Administration (EIA), U.S. crude stocks decreased by a surprise -5.6 million barrels (-5.6M bbl) versus an expected draw of -3.4M bbls. The bullish crude draw was trumped by a large build in RBOB of +6.8M bbls vs an expected build of +1.7M bbls. Heating oil, or diesel stocks, slightly exceeded expectations with a small build of +1.7M bbls.

As we turn the corner into the week ahead, here’s an inside look:

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL December 5th, 2017

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL December 5th, 2017

by Joseph Rokop

Oil prices fell one percent on Monday as traders took profits following last week’s decision by OPEC and other users to extend production cuts. The rise of  the U.S. dollar and an uptick in U.S. drilling activity also weighed on prices.

The WTI January contract settled at 57.47 on Monday, down 89 cents on the day. In London, the new front month Brent February contract settled at 62.45, outpacing U.S. crude, down 128 cents on the day. The Brent/WTI front month arb has eased the past two weeks, with Brent trading at a 4.92 premium to the WTI.

The RB January contract broke hard, breaking 5 cents on the day, settling at 1.69. The HO January also weighed heavily on price, breaking 5 cents on the day and settling at 1.89.

According to the Energy Information Administration (EIA), U.S. crude stocks decreased by a moderate 3.4 million barrels (-3.4M bbl) last week while distillate and gasoline stockpiles both increased. RBOB stocks posted an expected seasonal build of 3.6M bbl while diesel stocks posted an unexpected build of +3.6M bbl.

As we turn the corner into the week ahead, here’s an inside look:

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL November 6th, 2017

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL November 6th, 2017

by Joseph Rokop

Oil skyrocketed again on Monday, marking the largest daily rally in nearly a year, as traders weighed concerns over the “stabilization” of the Middle East. Saudi Arabia’s Crown Prince Mohammad bin Salman launched an anti-corruption campaign leading to the arrest of many prominent princes, businessmen and government ministers in the Kingdom.

The WTI December contract settled at 57.35 on Monday, up 1.71 cents on the day, marking the highest settle since June of 2015. In London, the Brent January contract settled at 64.27, outpacing U.S. crude, up 220 cents on the day. The Brent/WTI front month arb continues to expand, pushing new lows, with Brent trading at a 6.86 premium to the WTI.

The RB December contract supported crude prices, rallying 3.5 cents on the day, settling at 1.83. The HO December also boosted prices, rallying 5.5 cents on the day to settle at 1.94.

The crude market has unarguably turned bullish these past few weeks, as basic supply and demand laws push up prices. As demand rises, and U.S. production drops, we have seen shrinking U.S. stockpiles. Combine these factors with increased tensions in the Middle East, and a likely production cut extension (led by OPEC), and the fundamental and geopolitcal picture looks promising.

As we turn the corner into the week ahead, here’s an inside look:

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL October 30th, 2017

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL October 30th, 2017

by Joseph Rokop

Oil futures jumped 2 percent on Friday, as the global benchmark Brent crude rallied through the 60 dollar per barrel level amid expectations that the OPEC and non-OPEC oil producing nations will extend a deal to trim global crude supply through the end of 2018.

After talks between Saudi Arabian Crown Prince Mohammad Bin Salam and Russian President Vladimir Putin, Saudi Arabia, the defacto leader of the oil cartel, and Russia, the world’s second highest oil producing nation, released similar statements stating that both nations are strongly in favor of extending the agreement to cut oil production by 1.72 million barrels per day by nine additional months.

The WTI December contract settled at 53.98 on Friday, up 126 cents on the day and 4.7 percent on the week. In London, the Brent December contract settled at 60.44, up 114 cents on the day and 4.6 percent on the week. The Brent/WTI expanded, reaching new lows, with Brent trading at a 6.54 premium to the WTI.

The RB December contract supported crude prices, rallying 10 cents on the week, settling at 1.72. The HO December also boosted prices, rallying 10 cents on the week to settle at 1.87.

As we turn the corner into the week ahead, here’s an inside look:

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL October 23rd, 2017

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL October 23rd, 2017

by Joseph Rokop

U.S. oil futures were little changed to open the week on Monday after a tight and choppy week of trading. Prices stabilized above the psychological benchmark of 50 dollars per barrel for the third straight week.

The WTI December contract settled at 51.90 on Monday, up 18 cents on the day and 3 cents on the week. In London, the Brent December contract settled at 57.37, down 38 cents on the day and 45 cents on the week. The Brent/WTI arb has started to narrow, with Brent trading at a 5.51 premium to the WTI.

The RB December contract supported crude prices, up 4 cents on the week, settling at 1.640. The HO December remained steady, trading around 1.800.

According to the Energy Information Administration (EIA), U.S. crude stocks fell 5.7 million barrels (-5.7M bbl) last week temporarily holding up crude. The mild draw in crude was unable to sustain higher prices due to a surprising drop in U.S. refining rates and and unexpected build in fuel stocks, indicating a decline in U.S. demand.

As we turn the corner into the week ahead, here’s an inside look:

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL October 9th, 2017

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL October 9th, 2017

by Joseph Rokop

U.S. oil futures tumbled last week, breaking over three and half dollars, or 4.6 percent, as traders focused on the implications of Hurricane Nate and its potential disruption to refining capacity and crude production in the Gulf of Mexico.

The Bureau of Safety and Environmental Enforcement, or the BSEE, estimated over 90 percent of Gulf Coast production was taken offline this weekend in preparation for Hurricane Nate.

The WTI November contract settled at 49.22 on Friday, down 1.50 on the day. In London, the Brent November contract settled at 55.62, down 1.38 on the day. Brent’s decline snapped a five-week winning streak, the longest since June of 216. The Brent/WTI arb has continues to widen, with Brent trading at 6.22 premium to the WTI.

The RB November contract was unchanged settling at 1.559 and the HO November settled down 2.3 cents at 1.744. Crude meandered back up 25 cents on Columbus Day, as traders awaited the market re-open post holiday.

As we turn the corner into the week ahead, here’s an inside look:

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL October 2nd, 2017

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL October 2nd, 2017

by Joseph Rokop

Oil futures fell over two percent Monday on strong signs of higher global output due to an increase in OPEC production and U.S. drilling efforts. Last weeks inflated prices were unable to hold on to start the month.

According to Baker Hughes, U.S. drillers added 6 oil rigs last week, bringing the number of active oil rigs in North America up to 750, as shale players looked to take advantage of inflated prices.

OPEC production increased by 150,000 barrels per day (150K bpd) to 32.7M bpd, led by Iraq and Libya, while Iraqi exports also rose (reported by Reuters).

The WTI November contract settled at 50.58 on Monday, down 2.28 from last week’s high of 52.86. In London, the Brent November contract settled at 56.12, down 3.37 from last week’s high of 59.49. The Brent contract now trades at a 5.54 dollar premium to WTI.

The RB November contract settled down 3.5 cents at 1.555 and the HO November settled down 4.5 cents at 1.767.

Inventory numbers were mixed last week, as crude posted an unexpected draw of 1.9 million barrels while gasoline and diesel stocks were a wash.

As we turn the corner into the week ahead, here’s an inside look:

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL September 25th, 2017

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL September 25th, 2017

by Joseph Rokop

Oil futures traded sideways last week in a tight one dollar and fifty cent range, consolidating at 50.50 per barrel. Crude prices are up 15 percent over the last three months amid optimism that the oil market is slowly beginning to rebalance.

The new front month WTI November contract settled at 50.66 on Friday, up 11 cents on the day. In London, the front month Brent November contract settled at 56.86, up 43 cents, after touching a six-month peak of $56.91 earlier in the session. Brent closed the week with a 2 percent rally, it’s fourth fourth-consecutive weekly gain.

The arbitrage between the global benchmark and the WTI now trades over 6 dollars apart.

The RB November contract settled at 1.626, up 2 cents on the day and week. The HO November contract continued its upward climb on the month, settling at 1.808, up 20 cents since August. The RBOB/WTI crack continued to break, trading 17.50 while the HO/WTI crack continued to rally, now trading 25.25.

According to the Energy Information Administration (EIA), U.S. crude inventories increased by +4.6 million barrels (+4.6M bbls) last week, slightly exceeding expectations for a +3.5M bbl build. U.S. gasoline stocks met forecasts, decreasing by -2.1M bbls. U.S. heating oil, or diesel stocks, dropped -5.7M bbls, giving crude a small boost.

As we turn the corner into the week ahead, here’s an inside look:

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL September 18th, 2017

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL September 18th, 2017

by Joseph Rokop

Oil futures ticked up on Friday, but not before settling lower for the fifth-straight week as traders weighed the effects of Hurricane Harvey on refinery demand and crude production in the Gulf of Mexico.

The WTI October contract settled at 47.29 on Friday, up just 6 cents on the day. The WTI rallied from a low of 45.58 on August 30th. In London, the new front month Brent November contract settled at 52.75 on Friday, up just 11 cents on the day. The arbitrage between the global benchmark and the WTI eased 1 dollar, now trading 4.25 apart.

The RB October contract settled at 1.748, pulling back 1.8 percent on the day, but up 13.4 percent on the week. The RB September posted a two-year high on Thursday of 2.171. The RBOB/WTI crack now trades at 23.46, up a whopping 70 percent over the last two weeks.

As we turn the corner into the remainder of the week, here’s an inside look:

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL September 4th , 2017

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL September 4th , 2017

by Joseph Rokop

Oil futures ticked up on Friday, but not before settling lower for the fifth-straight week as traders weighed the effects of Hurricane Harvey on refinery demand and crude production in the Gulf of Mexico.

The WTI October contract settled at 47.29 on Friday, up just 6 cents on the day. The WTI rallied from a low of 45.58 on August 30th. In London, the new front month Brent November contract settled at 52.75 on Friday, up just 11 cents on the day. The arbitrage between the global benchmark and the WTI eased 1 dollar, now trading 4.25 apart.

The RB October contract settled at 1.748, pulling back 1.8 percent on the day, but up 13.4 percent on the week. The RB September posted a two-year high on Thursday of 2.171. The RBOB/WTI crack now trades at 23.46, up a whopping 70 percent over the last two weeks.

As we turn the corner into the remainder of the week, here’s an inside look:

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL september 4th , 2017

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL september 4th , 2017

by Joseph Rokop

Oil futures tumbled on Monday while gasoline prices ripped higher. Hurricane Harvey wreaked havoc this weekend, storming through Texas knocking out major Gulf Coast refineries halting inland production. As the weak progresses, the storm is expected to drift east into The Gulf of Mexico and disrupt offshore oil production as well.

The WTI October contract settled at 46.57 on Monday, down 2.4 percent on the day. Intraday, the WTI was down two dollars from a high of 48.20 to a low of 46.15. In London, the Brent October contract settled at 51.85, down just 1 percent on the day. The arbitrage between the global benchmark and the WTI has blown out, now trading over 5 dollars apart.

The RB October contract settled at 1.5713, up 2.5 percent on the day after posting a high of 1.6189.  The RBOB/WTI crack now trades at 19.70, up a whopping 17 percent on Monday and five dollars from this time last week.

As we turn the corner into the remainder of the week, here’s an inside look:

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL August 21st , 2017

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL August 21st , 2017

by Joseph Rokop

Oil futures traded sideways on Friday, down 76 cents on the week. Crude continues to trade in a neutral quiet channel as traders sit back and wait for an overreaction by the bulls or the bears.

The WTI September contract settled at 48.82 on Friday, up 23 cents on the day. In London, the Brent September contract settled at 52.00, up 10 cents on the day. The arbitrage between the global benchmark and the WTI has widened out significantly, trading over three and a quarter dollars apart.

According to the Energy Information Administration (EIA), U.S. crude inventories decreased by a whopping -6.5 million barrels (-6.5M bbls) last week, more than doubling expectations of a -2.7M bbl draw. The synthetic draw of -5.2M bbls was initially shrugged off as crude traded range bound due to the uptick in gasoline supply.

U.S. gasoline stockpiles posted a large build of +3.4M bbls, blowing out expectations of a -1.5M bbl draw. The gasoline surplus was unable to pressure crude lower as traders were zeroed in on the crude draw. The RB September contract briefly dropped below 1.6000 on Wednesday, but eventually reversed to the upside as crude led the complex higher. U.S. heating oil, or diesel stocks, were near unchanged on the week.

As we turn the corner into the week ahead, here’s an inside look:

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL August 14th , 2017

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL August 14th , 2017

by Joseph Rokop

Oil futures traded sideways on Friday, down 76 cents on the week. Crude continues to trade in a neutral quiet channel as traders sit back and wait for an overreaction by the bulls or the bears.

The WTI September contract settled at 48.82 on Friday, up 23 cents on the day. In London, the Brent September contract settled at 52.00, up 10 cents on the day. The arbitrage between the global benchmark and the WTI has widened out significantly, trading over three and a quarter dollars apart.

According to the Energy Information Administration (EIA), U.S. crude inventories decreased by a whopping -6.5 million barrels (-6.5M bbls) last week, more than doubling expectations of a -2.7M bbl draw. The synthetic draw of -5.2M bbls was initially shrugged off as crude traded range bound due to the uptick in gasoline supply.

U.S. gasoline stockpiles posted a large build of +3.4M bbls, blowing out expectations of a -1.5M bbl draw. The gasoline surplus was unable to pressure crude lower as traders were zeroed in on the crude draw. The RB September contract briefly dropped below 1.6000 on Wednesday, but eventually reversed to the upside as crude led the complex higher. U.S. heating oil, or diesel stocks, were near unchanged on the week.

As we turn the corner into the week ahead, here’s an inside look:

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL August 7th , 2017

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL August 7th , 2017

by Joseph Rokop

Oil futures broke small on Monday, trading just under two-month highs Crude prices are unchanged week-over-week, as the market trades in a neutral volatile channel while traders await the results of a meeting in Abu Dhabi between leaders from OPEC and non-OPEC oil producing nations.

The WTI September contract settled at 49.69 on Monday, down 19 cents on the day. In London, the Brent September contract settled at 52.37, down 5 cents on the day. The arbitrage between the global benchmark and the WTI held steady at just under two and a half dollars per barrel.

According to the Energy Information Administration (EIA), U.S. crude inventories decreased by a moderate -1.5 million barrels (-1.5M bbls) last week, beating expectations of a -3.0M bbl draw. The synthetic build of +1.5M bbls initially put downside pressure on the oil market before gasoline ultimately took center stage.

U.S. gasoline stockpiles dropped -2.5M bbls, exceeding expectations of a -0.6M bbl draw. Gasoline's draw encouraged traders as the RB September contract spiked up to 1.6800 Wednesday, reversing the effect of the synthetic build in crude. U.S. heating oil, or diesel stocks, were near unchanged on the week.

As we turn the corner into the week ahead, here’s an inside look:

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL July 31st , 2017

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL July 31st , 2017

by Joseph Rokop

Oil futures continued their climb on Monday, trading near two-month highs. Crude is up four dollars week-over-week, after recent draws in U.S. supply and news that OPEC and non-OPEC oil producing nations will meet next week to discuss further measures aiming to reduce the global oversupply.

The new month WTI September contract settled at 50.17 on Monday, up 46 cents on the day. In London, the Brent September contract settled at 52.65, up 13 cents on the day. The arbitrage between the global benchmark and the WTI held steady at just under two and a half dollars per barrel.

According to the Energy Information Administration (EIA), U.S. crude inventories decreased by -7.2 million barrels (-7.2M bbls) last week, exceeding expectations for a -2.7M bbl draw. The synthetic draw of -4.5M bbls helped push the market up through the benchmark and psychological resistance level of 50 dollars per barrel.

U.S. gasoline stockpiles dropped -1.0M bbls, exceeding expectations of a -0.6M bbl draw. Gasoline's draw encouraged traders as the RB September contract is now trading over 1.6650. U.S. heating oil, or diesel stocks, also fell, down -1.9M bls, exceeding expectations of a -0.5M bbl draw.  

As we turn the corner into the week ahead, here’s an inside look:

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL July 24th , 2017

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL July 24th , 2017

by Joseph Rokop

Oil futures slid lower Friday, down 2.5 percent on news that OPEC supply is at 2017 highs despite their pledge to cut output. Crude shorts re-entered the market following the expiration on the front month WTI August contract as worries of a global supply glut were reignited.  

The new front month WTI September contract settled at 45.77 on Friday, down one dollar on the week. In London, the Brent September contract settled at 48.06 also down one dollar on the week. The arbitrage between the global benchmark and the WTI held steady at just over two and a half dollars per barrel.

According to the Energy Information Administration (EIA), U.S. crude inventories decreased by -4.8 million barrels (-4.8M bbls) last week, exceeding expectations for a -3.2M bbl draw. The synthetic draw of -1.6M bbls helped push the market to six-week highs.

U.S. gasoline stockpiles dropped a whopping -4.5M bbls, obliterating expectations of a -0.7M bbl draw. Gasoline's large synthetic draw of -3.8m bbls surprised traders as the RB September contract spiked up to 1.5975. U.S. heating oil, or diesel stocks, also fell, countering expectations of a +1.3M bbl build.  

As we turn the corner into the week ahead, here’s an inside look:

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL July 17th , 2017

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL July 17th , 2017

by Joseph Rokop

Oil futures rallied last week boosted by a dip in U.S. stockpiles, a drawback in U.S. crude production, and a slight uptick in Chinese demand, as market conditions were choppy and volatile.

The WTI August contract settled at 46.02 on Monday up four percent week over week. In London, the front month Brent September contract settled at 48.42, also up four percent. The arbitrage between the global benchmark and the WTI remains flat month over month at two and a half dollars per barrel.

According to the Energy Information Administration (EIA)U.S. crude inventories decreased by -7.5 million barrels (-7.5M bbls) last week, nearly tripling expectations for a -2.7M bbl draw. U.S. gasoline stockpiles also dropped, down -1.6M bbls, countering expectations of a +1.1M bbl build.

Crude was unable to decisively rally through Edify Trading’s high volume resistance area at 46.75, and has been stubbornly pivoting around 45.75 per barrel.

The large draws in U.S. crude and crude product stockpiles is deceptively bullish to most retail traders. However, one needs to dig a little deeper to fully understand the politics behind the “unarguable” supply and demand figures released here in the states.  

As we turn the corner into the week ahead, here’s an inside look:

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL July 10th , 2017

WEEKLY OUTLOOK BY EDIFY TRADING - CRUDE OIL July 10th , 2017

by Joseph Rokop

Oil futures edged lower Friday, as crude shorts re-entered the market going into the third quarter. Market sentiment turned bearish last week driven by an increase in production from the U.S. and a persistent unending global oversupply.

The WTI August contract settled at 44.23 on Friday down two dollars on the week. In London, the front month Brent September contract settled at 46.71 also down two dollars on the week. The arbitrage between the global benchmark and the WTI remained flat on the week at two and a half dollars per barrel.

According to the Energy Information Administration (EIA)U.S. crude inventories decreased by -6.3 million barrels (-6.3M bbls) last week, exceeding expectations for a -2.3M bbl draw. The synthetic draw of -4.0M was fueled by stronger refining activity and reduced imports.

U.S. gasoline stockpiles dropped -3.7M bbls, far exceeding expectations of a -1.1M bbl draw.  U.S. heating oil, or diesel stocks, declined -1.9M bbls, countering expectations of a +0.2M bbl build.

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