Amid doubts over global economic growth (and demand) as well as rising Russia-Saudi decisions on supply (and Alberta production cuts), WTI has rebounded modestly post-trade-truce, holding around $53 (despite today's carnage in stocks).

In an interview Tuesday, Saudi Energy Minister Khalid Al-Falih walked back recent calls for 1 million barrels of cuts to daily output by OPEC and other major exporters.

“It’s premature to say what will happen” in Vienna, Al-Falih said in an interview at a United Nations climate-change conference in Poland. “We need to get together and listen to our colleagues, hear about their views on supply and demand and their projections of their own countries’ production”.

The note of caution combined with news that the Saudis had slashed the price they charge to Asian customers to dent traders’ optimism.

“It’s not a good price signal”, said Bob Yawger, director of futures at Mizuho Securities USA in New York. “Either demand is bad or all the talk about cutting production is just lip service”.

API

• Crude +5.36mm (-900k)
• Cushing +1.44mm
• Gasoline +3.61mm
• Distillates +4.32mm

API reports a surprise 5.36mm barrel build in crude inventories (expectations were for a 900k draw). The 11th consecutive crude build in a row prompted a drop in WTI prices, back below $53...

Additionally builds across Cushing and products is not positive.

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WTI popped up to $53 right before the API data hit but knee-jerked lower on the print...

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Given the market holiday tomorrow, we assume DOE data will be released on Thursday.