Energy futures are sliding for a fourth straight day as supply increases take the pole position in the rumor race, and technical support levels crumble.
Reports that the US asked Saudi Arabia to increase production are taking blame for the sell-off this morning, one of many story-lines that will be debated as the count-down to the June 22nd OPEC meeting continues.
As we approach the 3 week mark since Brent broke above $80, most of the futures contracts are close to giving back all of their May gains. While WTI lagged behind the rally, and has led the losses as its discount to Brent reached its widest in over 3 years, the US-based contract has found a bid this week, bouncing from $11 last week to the mid-$9 range this morning.
As the trade war stories rage on, the WSJ notes that China’s rapidly expanding crude oil reserves may be skewing the calculations of global oil inventories, and perhaps overstating the rebalancing story.
The White House did not release its official plan for changes in renewable fuel policy Monday as expected. RIN values still sold off however, with current year ethanol RINs reaching their lowest levels in nearly 5 years.