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Market Currents: Oil choppy ahead of likely inventory draw

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Crude is flip-flopping ahead of an exceedingly likely inventory draw to crude stocks from tomorrow’s Labor Day-delayed inventory report. With a choppy U.S. dollar, crude is getting whipsawed around; hark, here are five things to consider in energy markets today:

1) Despite this piece today highlighting the strong appetite for sweet crude from teapot refiners in Qingdao, we still see Arab Gulf sour grades as the leading source of imports into Qingdao.

That said, according to our ClipperData, imports of sour Latin American grades have been marginalized in recent months as total teapot demand wanes, while West Africa – the leading region for sweet grade crude to the northern port – continues to see volumes holding up.

http://fuelfix.com/blog/2016/09/07/market-currents-oil-choppy-ahead-of-likely-inventory-draw/

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