– WTI and brent suffered more losses this week despite two strong excuses to rally. Firstly, EIA data delivered the type of numbers that bulls have been waiting for all year with a 6.4m bbl crude oil draw and 2.9m bbl gasoline draw while refiner demand printed an all-time high of 17.5m bpd. Secondly, OPEC floated news that it is considering additional output cuts of 1%-5%. Sentiment-wise we think it’s critical to note that the market ignored positive news flow to print lower daily lows in three of the last four trading days. – There was a general feeling of oil bulls throwing in the towel this week evidenced by outflows of more than $280m in the USO, a deepening put-skew in options markets (more on that later,) 10-month lows for oil producer equities (despite global equities touching record highs) and massive downward revisions of price forecasts from banks. […]