{"id":52095,"date":"2020-04-01T09:51:53","date_gmt":"2020-04-01T14:51:53","guid":{"rendered":"https:\/\/olduvai.ca\/?p=52095"},"modified":"2020-04-01T09:51:57","modified_gmt":"2020-04-01T14:51:57","slug":"wti-extends-losses-after-biggest-crude-build-since-2016","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=52095","title":{"rendered":"WTI Extends Losses After Biggest Crude Build Since 2016"},"content":{"rendered":"\n

WTI Extends Losses After Biggest Crude Build Since 2016<\/a><\/h3>\n\n\n\n

After its worst quarter ever,<\/strong> as COVID-19 lockdowns crushed demand, raising fears about overflowing storage tanks amid a price war that has flooded the market with extra supply, all eyes are glued to today’s official inventory data (after API reported a major surprise build in crude and gasoline stocks<\/em><\/a>) as Standard Chartered analysts, including Emily Ashford warned in a report, oil tanks around the world could fill in six weeks, a move that will likely force significant production shut-downs,<\/p>\n\n\n\n

\u201cHuge inventory builds, potentially exhausting spare storage capacity, will mean that market balance requires an unprecedented output shutdown by producers,\u201d <\/strong><\/em>they wrote.<\/p><\/blockquote>\n\n\n\n

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So, eyes down…<\/p>\n\n\n\n

“There is the very real possibility that this week’s storage reports could be the energy patch version of last Thursday’s Weekly Jobless Claims,”<\/strong><\/em> Robert Yawger, Mizuho Securities USA’s director of energy said in a note.<\/p>

“I would expect the numbers to be supersized and challenge multi-year highs\/lows on multiple data points. Of course, I have been expecting big numbers for the past couple week, but the fireworks have not happened. That leads me to believe that the data explosion will likely happen this week … Exports will likely be down big, and refinery utilization will likely pull back dramatically. That will leave a lot of crude oil on the sidelines … EIA crude oil storage has been higher for nine weeks in a row. Storage will likely double up and increase at the rate of around 10 million for another nine weeks…at least.”<\/p><\/blockquote>\n\n\n\n

API<\/strong><\/p>\n\n\n\n