How many times have I said that betting on further increases in crude prices is probably a bad idea at this point?
Between the Saudi's perceived reluctance to extend the output cut deal past six months (for what I contend are political reasons) and US shale's refusal to just roll over and die so the market can rebalance once and for all, it seems exceptionally unlikely that crude is going to get a sustainable bounce.
Well, consider the following re: inventories (via Bloomberg)...
WTI little changed to trade near $53. EIA inventory report showed U.S. crude stockpile build in line with expectations. Market awaits data on production cuts from OPEC, non-OPEC producers.
Build in U.S. crude stockpiles was essentially in line with what consensus expectations were and smaller compared to normal seasonal levels, Mike Dragosits, senior commodity strategist at TD Securities in Toronto, says by phone
Market is waiting to see official production cut data from OPEC, non-OPEC, he says
U.S. crude inventories rose for 3rd week, +2.84m bbl to 488.3m bbl
Cushing crude stockpiles fell for 3rd week, -284k bbl to 65.4m
Gasoline stockpiles +6.8m bbl to 253.2m bbl, highest level since Februar
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