WTI crude oil closed at $75.67 on the Friday before OPEC+ announced a surprise production cut for May through year end. That led to a gap higher at the start of the month and a rally that eventually extended to $83.53.
It's all gone now. WTI has essentially closed the gap, falling to $75.64
Technical sellers have been following the textbook with the sales into the gap.
On the fundamental side, the trouble at First Republic Bank is reinvigorating talk of a recession. Some recent economic indicators in the US have softened as well.
The drop in oil came despite a surprising drop in US inventories in the latest API data. The draws are coming despite more SPR sales and ahead of driving season.
- Oil -6083K
- Gasoline -1919K
- Distillates +1693K
The consensus numbers for the EIA data at the bottom of the hour are:
- Crude -1486K
- Gasoline -933K
- Distillates -839K
