The American Petroleum Institute (API) more than lived up to the whisper number on crude oil by reporting a massive 10.451-million-barrel increase in crude oil supply. Yet as impressive as the number night seem, it appears that it was mostly priced in causing only modest selling after its release.
Mood shifts in the oil market are becoming more violent and lacking any trend. Prices spiked to 63.89 on the Saudi attacks and broke down to 50.99 before recovering into what is now one of the wildest trading rages in recent memory.
U.S benchmarks are surging into U.S hours Friday in hopes of an interim trade deal. President Trump has lauded progress between high-level delegates and is set to meet Vice Premier Liu He today before the closing bell.
Oil futures prices on the opening of the electronic session tested the lower end of the trading range on a report from the Honk Kong Press that “US-China talks are expected to last for only one day! No progress made.”
The crude oil market is still fixated on trade war news yet behind the scenes, there is a growing supply issue especially when it comes to distillate fuels. Oil prices sank as relations between the U.S. and China seemed to sour.
Oil prices had been rallying overnight on Chinese trade talk hopes but a drop in German factory orders and reports that China is looking to strike back at the U.S. over its Chinese tech list raised more concerns about oil demand.