WTI oil prices remain range bound, lacking the conviction to move substantially in either direction. Yesterday’s weekly inventory report did little to foster a breakout of the long-running range between $58 and $62. The initial headline screamed a large drawdown in crude oil inventories of 3.9 million barrels, but the exuberance was dashed by a reported gasoline inventory increase. The slight increase was remarkable because it has come in the face of record or near-record demand. The offset to the demand was strong output or production from refiners that continue to operate at elevated rates well above 90%.
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