It seems like WTI could hit $50/bbl sometime this week. The futures market is finding support from several supply disruptions currently happening. The first is that the Canadian wildfires switched direction back toward production facilities, causing another evacuation of the area. Suncor Energy Inc. and Syncrude Crude were both shutting down oil sands operations. Second, there are continued concerns around Venezuela’s economy and the attacks on facilities in Nigeria.
Another piece of bullish news was the API statistics that were released last night. The APIs reported a draw across the board; crude drew 1.1 million barrels, gasoline 1.9 million barrels and distillates 2 million barrels. The only bearish statistic was a 508,000 barrel build in Cushing, OK.
The DOE statistics released this morning showed an overall build in crude inventories of 1.3 million barrels, 461,000 barrels coming from Cushing. Both refined products had a larger draw than what was reported in the APIs. Gasoline drew 2.5 million barrels, and distillates 3.2 million barrels.
HO prices have increased five of the last six trading days, and RBOB prices increased all of the last six trading days. After the release of the DOE statistics it took the market some time to react, then it rallied up over five cents, but as of 12:15 p.m. ET it is only up around three cents.