WTI’s Narrowing Discount Masks Oversupplied Crude Oil Market, Brent Headed To $90

We take a look at the latest developments in the oil market, including charts of all the major inventory categories.

The Department of Energy reported this morning that in the week ending April 26, U.S. crude oil inventories increased by 6.7 million barrels, gasoline inventories decreased by 1.8 million barrels, distillate inventories increased by 0.5 million barrels and total petroleum inventories increased by 12.4 million barrels.



Crude oil prices plunged after the release of the latest inventory figures. One bright spot in the report was the sharp decrease in stockpiles at Cushing, Okla., and the broader Midwest. That spurred the WTI-Brent spread to a fresh 16-month low near $9. As Cushing stocks decline further in the coming months, the spread is expected to narrow further to $5.  (more)
 
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