The streak of crude oil drawdowns at the NYMEX delivery hub in Cushing OK is over at 11 weeks. The modest build in stockpiles of 338 kb last week at that location helps to flatten out what has been a weaker trend to begin the year as foreign prices have drawn out stocks in the US for export.
Crude oil production continues to climb to record levels in the first half of the year.
Weekly refiner inputs climbing ahead of the seasonal end of maintenance season.
The June WTI/Brent spread has widened over the last week and suggesting that the US export pace has slowed at these levels but it still remains above historical levels which offer little comparison but as long as OPEC remains at the current production pace this spread will be supported as it widens back out by export bids.
I mentioned this last week crude futures remain in a narrowing trading range and will wait for a futher narrowing of the bollinger bands before a breakout move.
Have a good day.
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