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Mixed DoE Report Prompts Crude Volatility, WTI Settling Higher

OIL

A particularly eventful DoE crude inventories report prompted acute volatility in front-month oil futures contracts, with WTI crude futures initially sinking on a particularly sizeable build in crude oil inventories. The latest week's data showed a build of over 21mln barrels, the largest build in inventories on data going back to 1982 and much higher than expected, while gasoline inventories saw a sizeable draw of well over 13mln barrels.

  • Crude initially dipped on the headline, before the gasoline stock draw added some support. Both metrics likely remain highly impacted by the Texas freeze in recent weeks that resulted in some of the state's largest refineries being knocked offline.

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