Oil prices erased gains today on doubts that an early OPEC+ would go ahead as planned. The market had expected the group to meet tomorrow, a week earlier than originally planned. However, while OPEC kingpin Saudi Arabia and non-OPEC leader Russia were thought to have tentatively agreed on a one-month extension to production cuts, S&P Global Platts reported today that the date of a meeting to finalize the deal remains uncertain. And, according to the Financial Times, the Saudis are reportedly ready to unwind their additional 1MM/bpd voluntary production cut. Brent had surpassed the $40/bbl mark in today’s session for the first time since March 6th, but erased those gains before closing in the red. WTI also hit its highest levels since March early on in the session. Crude stocks were down 2.07MM/bbls, compared to a forecasted build of 3.039MM/bbls. However, this number is a bit deceiving because ~4MM/bbls from our commercial crude stocks actually went into SPR rental space. Adjusting for this transfer, we calculate a build in inventory of $2.284MM/bbls. Gasoline inventories grew by 2.8MM/bbls (vs a forecasted build of 150K/bbls) while gasoline demand grew 300K/bpd. Distillate inventories grew by 9.9MM/bbls (vs the forecasted build of 2.97MM/bbls) and distillate demand was down -500K/bbls. WTI traded up $.48 or 1.30% to close at $37.29. Brent traded up $.22 or .556% to close at $39.79.

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