Yesterday, WTI closed up $1.55/bbl to $47.89, RBOB closed up $0.0394/gal to $1.5962, and HO finished up $0.0516/gal to $1.5685. After OPEC’s meeting on Monday, oil prices rallied to a two month high because of the bullish rhetoric that came from the meeting. The bullish news is that the group is deciding whether to crack down on certain countries not cutting production going forward, as well as, Saudi Arabia stating it will limit exports to 6.6 million barrels per day in August. Some other bullish news helping prices rally is that U.S. production is slowing down and the weaker U.S. dollar.
The API statistics were released last night and also helped prop prices higher. The statistics for crude were very bullish; reported was a 10.23 million barrel draw for last week. Cushing, OK accounted for 2.56 million barrels of that crude draw. Refined products were mixed; gasoline inventories built 1.9 million barrels, and distillates drew just 111,000 barrels.
The DOE statistics released today at 10:30 a.m. ET followed up with bullish figures on crude and refined products. Crude inventories drew 7.21 million barrels, 1.7 million barrels of that from Cushing. Gasoline actually showed a draw of 1.02 million barrels, and distillates had a larger draw than API report at 1.85 million barrels. Since the release of the DOE statistics, the market remains up across the board. As of 11:15 a.m. ET, WTI is up $0.58.bbl, RBOB is up $0.0020/gal, and HO is up $0.0160/gal.
Important resistance levels to watch:
Market closes over these value could signal further gains in oil prices.