Yesterday, WTI crude closed up $0.57/bbl to $52.47, HO closed up $0.0343/gal to $1.8221, and RBOB finished up $0.0372/gal to $1.7155. The rally in oil prices was a result of further indication that Saudi Arabia is committed to the production cut to reduce the global oversupply in oil.
After the close yesterday, the API statistics were released which put somewhat of a restraint on oil prices this morning. Crude inventories showed a surprise build of 519,000 barrels. However, refined products were bullish, both having large draws. Distillates drew 4.9 million barrels and gasoline drew 5.8 million barrels. Some other bearish news this morning keeping the market flat was the comment from the Russian Energy Minister stating plans to boost production in 2018. As well as, the Iraqi Kurdistan government is suspending operations for independence which will ease tension.
The DOE statistics mirrored the APIs; small build in crude inventories and draws in refined products. The DOEs showed a build of 856,000 barrels in crude inventories. Distillates drew 5.2 million barrels and gasoline drew 5.5 million barrels. Initially the market rallied after the statistics came out, but as of 12:20 p.m. EST oil prices are off across the board.
This morning, the technical report suggested the trend to be upward, with key resistance levels at $1.5257 in WTI, $1.8309 in HO, and $1.7442 in RBOB. However, with the slip in prices these resistance levels don’t appear to be tested today.