Outlook: Similar to the first two days of the week, concern about the delta variant and its impact on demand in key consuming nations like China has allowed for a setback in energy values. Today’s EIA report set for 9:30 am CDT should help guide direction.
- Yesterday afternoon the API predicted US crude oil inventories fell 879,000 barrels last week while Cushing, OK stocks rose 659,000 barrels.
- A Reuters poll suggests today’s weekly EIA report could show a 3.1 million barrel US crude oil draw. A Bloomberg poll suggests a 2.94 million barrel draw.
- China is banning rail passengers to Beijing from 23 regions in an effort to control Covid.
- Iran says Israel’s Mossad intelligence unit has been moving equipment to the UAE for about a month and is disrupting communication networks and sea and air navigation systems in the Persian Gulf and Sea of Oman.
- As of 9:16 am CDT: October Brent is $0.98 lower to 71.43, the U.S. dollar index is 0.004 lower at 92.007 while the nearby e-mini S&P 500 futures contract is down 10.00 at 4,405.00.
- Yesterday afternoon the API predicted US distillate inventories fell 717,000 barrels last week.
- A Reuters poll suggests today’s weekly EIA report could show a 543,000 barrel weekly distillate drawdown. A Bloomberg poll suggests a 754,000 barrel draw.
- US gasoline stocks were predicted to have fallen 5.75 million barrels last week, according to the API. A Reuters poll suggests today we could see the EIA report show a 1.78 million barrel draw reported. A Bloomberg poll suggests a 1.36 million barrel draw.
- An OPIS poll suggests today the EIA may report a 1.6 million barrel US propane build with responses ranging from a 750,000 barrel build to a 2.1 million barrel build.
With current trade near 69.00, WTI is in a position for a potential retest of its 100-day moving average coming in at 66.98.