During trading on Wednesday, gains in were scaled back, after Tuesday’s rebound. This followed an unexpected build in , underscoring concerns for reduced demand as the spread of the Delta strain of COVID-19 accelerates globally.
Yesterday’s API data saw US stocks swell by 806,000 barrels for the week through July 16, bringing the total in storage to totalling just under 50 million barrels.
The surprise build follows a week in which there was a drawdown in inventories of more than 4 million barrels, in line with estimates. The negative print exacerbated a selloff in crude, as investors priced in the recent OPEC+ breakthrough agreement to increase output from pandemic levels, as a way of meeting the anticipated sharp increase in demand as the global economy reopens.
Is this shift in trend—from a drawdown to an unforeseen build, in the same week, at the same time that US equities suffered their first weekly drop in a month—a speed pump or something more ominous: escalating concerns...read more...