API inventories show a build of 3.857mln

The API inventory data recorded a build of 3.857 million barrels last week and this adds to the oil market woes after Saudi Arabia confirmed their lowest export numbers in 30 years. In terms of the rest of the report, Cushing stocks fell by 3.289 million barrels. Gasoline stocks rose by 4.267 million and lastly distillate recorded a build of 0.919M.

Spot WTI 30-minute chart

Looking at the 30 minute chart now and the price fell around 1.15% following the announcement At the time of writing these moves have now been largely pared and WTI trades 2.22% higher in line with the broader risk sentiment for the session. 

It feels like the market is ignoring some very important fundamental facts. The Chinese have now imposed a ban on flights to and from Beijing after a possible second wave of infections hits the city. The city officials have also closed schools but one of the main issues is the fact that some of the infected people visited a very densely populated market. The situation in America is also pretty tense right now as Texas coronavirus cases rose 2.9% above the 7-day average. Florida is also struggling as the case count there moved 3.6% higher vs the 7 day average of 2.5%. New York, however, has improved with a 0.2% rise.