Crude oil prices are rising after Genscape reported that supplies in Cushing, Okla., suddenly plunged by one million barrels. This is adding to the perception that the physical oil market is tightening much faster. Brent spreads driving the market into contango is signaling that demand is exceeding short term supply. Historic draws in U.S. inventories are signaling the same thing. Oil supply in the United States is back below 2016 levels.
Tropical Storm Karen retained its strength as the system encountered shearing winds on a path through the Gulf of Mexico to the U.S. coast. The storm is no longer expected to become a hurricane, forecasters said.