Welcome to the whipping boy edition of Oil market Fundamentals!
Oil prices have been the go-to whipping boy for macro headline trades. Trade war? Sell-off. Bullish storage draws? Ignored.
Over the last 2-weeks, we've seen EIA report builds in US crude storage, but most of that is from refineries rushing in crude imports. For the next 6-weeks, we are seeing much lower crude imports which should resume the trajectory for US crude storage draws.
The tightness in the US crude market is now showing up via timespreads with WTI 2-3 going to the steepest backwardation