Oil’s gains were capped today as China trade talk headlines spoiled the party.
“China has been the real driver behind oil demand globally for the last decade and if that is turned off, it is going to make people very nervous,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts.
Crude -2.133mm (+1.75mm exp)
After a surprise crude draw last week, expectations were for a build but API reported a surprise 2.133mm crude draw (and draws across all products and at Cushing).
WTI faded back after attempting to tag $60 intraday ahead of the API print, kneejerked down to $59 the figure, before bouncing higher after the
“There was some technical trading, trying to get that push up toward the big round number psychologically at $60, and it failed just short of it,” said John Kilduff, partner at Again Capital LLC, a New York hedge fund focused on energy.