WTI Extends Gains After API Reports Large Draws Across The Board

 Oil eked out a gain (holding yesterday’s surge) after a report showed that US job openings in February fell to the lowest since 2021, reigniting concerns over a global economic slowdown.

“In this macro environment, ahead of payrolls this Friday, the signal of employers not looking for workers is not helping,” said Jonathan Wagner, global head of crude options at Marex North America

Additionally, the market largely ignored the potential resumption of oil exports from Iraq’s semi-autonomous Kurdistan region on Tuesday.

API

• Crude -4.346mm (-7.5mm exp)

• Cushing -1.035mm

• Gasoline -3.97mm (-1.3mm exp)

• Distillates -3.693mm (-140k exp) – biggest draw since Oct

After last week’s large crude draw, expectations were for another big reduction in stocks and API reported draws across the board…

Source: Bloomberg

WTI hovered near $80.50 ahead of the print and extended gains after…

For now, the oil market remains “flush” with inventories, said Manish Raj, managing director at Velandera Energy Partners. However, the announced output cuts will “turn the market to a deficit in the second half.”