After API's surprise draw across all major categories, DOE reported the 7th weekly crude build in a row (even as crude imports plunged). Gasoline, Distillates, and Cushing all saw draws even as crude production rose to new cycle highs - back above 9mm bbl/d. Gasoline demand saw its biggest annual drop in 16 years.
While OPEC compliance remains key, it appears fundamental over-supply fears are mounting once again. Against expectations of a crude build and gasoline draw, API reported a surprise crude draw but smaller than expected gasoline draw. Cushing also saw a major drawdown and Distillates saw the biggest draw since Oct 2014. WTI and RBOB prices were marginally higher on the print.
Just as oil was set to test session lows after another massive oil build, sending US crude inventories to all time highs, many were wondering if the same exact algos that struck for the past weeks, would reappear sending oil surging on negative data would hit again. The answer: a resounding yes.
Following last night's shockingly massive crude build reported by API, DOE data confirmed the ugliness with a 13.83mm build (over 5 times larger than the expected 2.5mm build). Cushing also saw a major unexpected build but Gasoline and Distillates saw lower than expected builds (Gasoline draw). Production rose to a new cycle high.
After a weak day in the energy complex driven by yuuge IEA output forecasts, and following last week's continued trend of large inventory builds, API reported a shockingly massive 14.27 mm barrel build (2.5mm exp). This is the 2nd largest weekly build in US history. The reaction in WTI and RBOB futures was immediately obvious as the former plunged below $52 and the latter below $1.4750.
DOE confirms API's major builds in Crude, Gasoline, and Distillates sending WTI and RBOB prices tumbling. US crude production declined in the last week but remain on an upward trajectory with rig counts as East Coast gasoline inventories hit an new all-time record high.
WTI (and RBOB) prices slid lower into the NYMEX close ahead of API's report tonight that showed further major builds in crude and products. Crude saw inventories rise 5.83mm barrels last week - the most since the end of October and while Cushing saw its 4th weekly draw in a row, Gasoline and Distillates both saw major builds.
"The gasoline numbers are probably the biggest negative from this week's report. The stockpile has risen for 9 of the last 11 weeks and inventories are building in an already over-supplied market. Gasoline days of supply has jumped to 28.8 versus 27.1 a week ago. That inventory overhang just isn't going away."
After two weeks of large crude and gasoline builds, API reported bigger than expected builds in crude, gasoline, and distillates (and smaller than expected draw in Cushing) which sent WTI prices tumbing, crossing back below the $53 Maginot Line once again.
A mixed bag of crude draw and gasoline builds from API combined with IEA comments on rising US Shale output offset by Saudi jawboning about more production cuts possible has pushedoil green before today's DOE data. However, oil prices tumbled when DOE printed an unexpected 2.347mm barrel crude build (1mm draw expected) and another major build in gasoline inventories. US crude production remains at 9-month highs.
Following last week's surge in crude and product inventories, API reported a much bigger than expected drawdown in crude inventories ( versus -1mm expectations). While this spiked WTO prices, they fell back amid massive builds in gasoline (9.75mm) and distillates.
After last week's massive product builds (and crude draw), API suggested additional builds ahead of DOE data which confirmed even bigger than expected builds in Crude, Gasoline, and Distillates. WTI gapped lower on the print then accelerated lower as US crude production rose by the most since May 2015. Then the algos decided it was time to rip oil prices higher (perhaps on indications of stronger demand)...
Having tumbled to a $50 handle during the day session, WTI Crude whipsawed to unchanged after API reported 1.53mm crude build (in line with expectations), a Cushing draw, and builds again (after last week's massive builds) for gasoline and distillates.
Following API's larger than expected crude draw (and huge product builds), DOE reports massive builds in Distillates (+10mm - biggest sine Jan 2015) and Gasoline (+8.3mm - biggest since Jan 2016) and another big build in Cushing inventories. Crude inventories drew down 7.05mm barrels - confirming API's data. US crude production also picked up and WTI prices tumbled.
Crude prices remain lower since last week's inventory data indicated a surprise (albeit small) build (but bounced today). With expectations for a 2mm draw this week, API reported crude inventories plunged 7.431mm last week - the most since September. However, Gasoline and Distillates saw huge inventory builds (biggest since Jan 2016) and WTI prices whipsawed.