Oil prices closed higher for a fifth straight day as traders were sensitive to geopolitical headlines (from Israel) and the domestic election situation.
The tension in the oil market is “palpable” as headlines around the U.S. election, turmoil in the Middle East, economic woes in China and a potential hurricane in the Gulf of Mexico “swirl,” Rebecca Babin, senior energy trader and managing director at CIBC Private Wealth US, told MarketWatch.
“The reality of very short-term volatility has traders cutting risk and taking the shoot first, ask questions later approach the moment trades stop working.”
Additionally, a tropical storm threatens production from the Gulf of Mexico.
API
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Crude +3.13mm (0.00mm exp)
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Cushing +1.72mm
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Gasoline -928k (-900k exp)
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Distillates -852k (-300k exp)
US crude inventories continued their noisy run of the last few weeks with a bigger than expected crude build. Products saw inventory draws and stocks at the Cushing hub rose by the most since May…
Source: Bloomberg
WTI dipped very modestly on the API-reported crude draw, but is holding above $72 for now…
Oil prices maintained an upward trend Tuesday as “risk taking remains limited with many headlines expected in the next few days, coming from the Federal Reserve’s Policy meeting, China’s congressional meeting that will determine governmental stimulus, and the U.S. election,” Alex Hodes, director of energy market strategy at StoneX, wrote in Tuesday’s energy newsletter.
Finally, pump prices remain very low relative to crude and wholesale gasoline prices…
…with the election now behind us, how long before prices snap up higher?
Tyler Durden
Tue, 11/05/2024 – 17:20
