- WTI once again tested its multi-month resistance level of around $66.50/Bbl on Tuesday
- The oil market continues to weigh the impact of unsanctioned Iranian barrels entering the market with improving demand in most regions globally
- Oil prices on Wednesday morning were down nearly one percent but still trading just shy of $66/Bbl
- The WTI prompt cash roll climbed $0.20/Bbl, the strongest since May 20. The roll trades in the three sessions after expiry (Bloomberg)
- The cash roll is a physical spread that allows a trader to roll long positions from one month to the next
- The spread serves as an indicator of supply and demand balances at Cushing
- The key price spread is signaling that oil traders are bracing from a potential supply crunch ahead of summer driving season, according to Bloomberg
- Crude oil inventory data is due this morning at 9:30 AM CST from the EIA
- Bloomberg Survey Estimates (Average):
- US Crude Oil Inventories: -750 MBbl
- US Gasoline Inventories: -1,360 MBbl
- US Distillate Inventory: -2,035 MBbl
- US Refinery Utilization Change: 0.12%
- Bloomberg Survey Estimates (Average):