The slowdown of the Seaway pipeline increased the WTI/Brent spread which is now above the 20 USD. Taking into consideration that Exxon will close for 45
days its Yanbu refinery for the maintenance season it' s very likely that the spread will continue to grow as more and more oil will be stuck in Cushing. So Brent became more volatile than WTI and as geopolitics is playing in favor of a bullish movement I would personnaly bet on widening spread in the next weeks. By blocking Iran crude buyers to pay in USD, the US is basically increasing tensions on the crude price.
Yesterday's
API report was mixed with a larger than expected build in crude oil, a
build in gasoline within the expectations and a surprise draw in
distillate fuel. Total crude oil stocks increased by 3.6 million barrels. Gasoline showed a build
in inventory while distillate fuel stocks decreased versus an
expectation for a small build.days its Yanbu refinery for the maintenance season it' s very likely that the spread will continue to grow as more and more oil will be stuck in Cushing. So Brent became more volatile than WTI and as geopolitics is playing in favor of a bullish movement I would personnaly bet on widening spread in the next weeks. By blocking Iran crude buyers to pay in USD, the US is basically increasing tensions on the crude price.
As the API showed yesterday total crude oil stocks will increase by 2 to 4 million barrel but I would be surprised if distillate fuel stocks decreased as the refiners should prepare themselves for the maintenance season and then compensate now he decrease of production in the next 2 months.
For the same reason I see gasoline stocks increasing by more than 1.6 million barrels as the API showed.
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