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WTI Tumbles After Crude Inventories Rise For 11th Straight Week - Longest Streak On Record

Tyler Durden's picture




 

Crude prices rallied this morning - on the back of absolutely nothing - ahead of this morning's DOE inventory/production data. Following last night's bigger than expected 4.8 mm barrel API inventory build, DOE reports a huge 8.17mm barrel build (against expectations of a 4.91mm build) - the 11th consecutive week and longest streak on record. Cushing inventories rose for the 16th consecutive week, up 1.91mm barrels (against a 2.1mm barrel build expectation). Crude production hit a new record high. Oil prices are giving back this morning's gains...

  • *CRUDE OIL INVENTORIES ROSE 8.17 MLN BARRELS, EIA SAYS
  • *CUSHING CRUDE OIL INVENTORIES ROSE 1.91 MLN BBL, EIA SAYS
  • *U.S. CRUDE OUTPUT ROSE 0.032% TO 9.422 MLN B/D, EIA SAYS

11th week in a row... a record

 

As Total Inventories hits a new record high...

 

And production hits a new record high...

 

And Crude gives back this morning's hope-filled rally

 

Charts: Blooomberg

 

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Wed, 03/25/2015 - 10:41 | 5925229 JRobby
JRobby's picture

I, personally don't need gas. I already have it.

Wed, 03/25/2015 - 10:54 | 5925288 dimwitted economist
dimwitted economist's picture

If gas is $2.59 with $46 oil what will gas be If it does hit $40??? MORE i bet.. 

Wed, 03/25/2015 - 11:10 | 5925358 negative rates
negative rates's picture

It's the end of the quarter and we have to keep our books straight.

Wed, 03/25/2015 - 11:11 | 5925363 ...out of space
...out of space's picture

russian ruble-( putin )  will show the way of crude.

just overlay chart of usd/rub with crude.

maybe you will find somethink

Wed, 03/25/2015 - 10:55 | 5925296 NOTW777
NOTW777's picture

inexplicable buying $USO, $XLE despite horrible #s

Wed, 03/25/2015 - 10:59 | 5925309 One And Only
One And Only's picture

Same but UWTI, OIL, and UCO because fuck it

Wed, 03/25/2015 - 11:05 | 5925333 NOTW777
NOTW777's picture

lol - apparently a huge glut of oil is bullish

Wed, 03/25/2015 - 11:21 | 5925399 disabledvet
disabledvet's picture

Huge inventory builds are a positive for economic growth going forward.
I find it laughable that "we must blame North Dakota for producing too much top shelf oil too cheaply."

The Oklahoma Jew Oil is total shit. Just build more storage and processing facilities in the Dakotas. Fuck Jew Oil.

Wed, 03/25/2015 - 11:56 | 5925555 Jethro
Jethro's picture

Oklahoma Jew oil? LOL. I don't know one solitary jew here in Oklahoma. I did the civil design for a pretty big tank farm in Cushing several years ago. There are no jews outside of any metropolitan area, just farmers, hillbillies and assorted meth addicts.

Wed, 03/25/2015 - 11:03 | 5925325 RockRiver
RockRiver's picture
WTI Tumbles After Crude Inventories Rise For 11th Straight Week - Longest Streak On Record

 

Not just since Lehman....from FOREVER!

 

/sarc

Wed, 03/25/2015 - 11:07 | 5925350 JRobby
JRobby's picture

Safely stored.

Thanks Bible Belter's

Wed, 03/25/2015 - 11:28 | 5925422 disabledvet
disabledvet's picture

Gasoline storage numbers have collapsed. Prices are actually higher for distilled product. I would be long "specified storage." Again...you cannot trust the Jew. They turn everything to shot so they can charge more.

They do not want any price discovery whatsoever just for you to be fucked. Fuck the Jew and everything will be fine.

Wed, 03/25/2015 - 10:41 | 5925235 NoDebt
NoDebt's picture

It keeps crashing again and again to non-new lows.

I want my $30 oil.  When can I have it?

Dad, are we there yet?  Dad, are we there yet?  Dad, are we there yet?

 

Wed, 03/25/2015 - 10:48 | 5925267 LawsofPhysics
LawsofPhysics's picture

Yes, $30 oil, $100 gold, and $2 silver, yes, please.  Good luck actually taking delivery should it come to pass.

Wed, 03/25/2015 - 11:00 | 5925318 nope-1004
nope-1004's picture

It doesn't matter if it comes to pass because the pricing mechanisms are so far out of line with reality that it wouldn't surprise me to see your price targets hit.  Remember, the currency used as the yardstick is dead.  It is going to be replaced, so judging the underlying commodity using an MIC/EBT currency is the reason why there is so much price confusion today.

I remember when silver was at $40 and oil at $125.  Rumblings on here were "if it ever gets to $20 and $40 respectively, good luck because it will be TEOTWAWKI".

Wed, 03/25/2015 - 10:52 | 5925276 thatthingcanfly
thatthingcanfly's picture

Let us hope we don't ever see $30 oil. But having read the article the other day about the flood of new North Dakota production set to kick in in June, I fear that's where the price is headed. There's already a lot of carnage in the domestic production sector, which the sand mining company I work for supplies with proppant. We're seeing demand drop off significantly for the high-end proppants; but the cheaper "raw" sand is still selling well. For now. Worried about this summer.

Wed, 03/25/2015 - 11:05 | 5925336 thecrud
thecrud's picture

Then you are really going to hate 20.00. I dont mind where the oil comes from at that price.

Wed, 03/25/2015 - 13:34 | 5925960 winchester
winchester's picture

never ever going down below 35 and actual threshold is 45.

Wed, 03/25/2015 - 11:06 | 5925342 F em all but 6
F em all but 6's picture

DONT MAKE ME PULL THIS DAMN CAR OVER!!

Wed, 03/25/2015 - 10:42 | 5925240 Hohum
Hohum's picture

And crude imports still 7.3 million barrels per day, not much different from 12 months ago.

Wed, 03/25/2015 - 11:07 | 5925349 thecrud
thecrud's picture

The first explosion in the Saudis oil field as a result of them getting into the proxy war with Iran will sea change everything.

But for thetime enjoy the ride.

Wed, 03/25/2015 - 11:51 | 5925527 Jethro
Jethro's picture

The Bush regime would have backed a Saudi defense. The Obama regime...I'm not so sure will. If (actually when) Iran backs the Houthis, they'll have a presence in the Gulf of Aden and the Red Sea. That will effectively pinch off SA from the Arabian Sea. If the Saudi's can't export oil, their economy goes to shit, and gives an opportunity for civil unrest, and an opportunity for Iran to stir up some serious shit in SA. If SA goes tits-up, Oman, UAE, Bahrain (and probably Qatar) do too. That then makes conditions really shitty for Jordan, Israel and Egypt.

Wed, 03/25/2015 - 11:27 | 5925420 WarHorse
WarHorse's picture

You mean "per week" but I get your drift

Wed, 03/25/2015 - 11:30 | 5925438 Hohum
Hohum's picture

WarHorse,

No, I mean PER DAY.

http://ir.eia.gov/wpsr/wpsrsummary.pdf

Wed, 03/25/2015 - 11:41 | 5925485 wrs1
wrs1's picture

Apparently you don't get the drift, it is per day and just one day of imports equals nearly the entire massive inventory build being touted.  So really, where is the oversupply coming from and why is it that imported oil which would be priced according to Brent, is being sold at WTI or less?  The market is dislocated because it's being manipulated down by dumping.  

Wed, 03/25/2015 - 11:57 | 5925560 Xploregon
Xploregon's picture

Could any of this be related or an element related to the PPT building reserves and economy preparing for WOAR?

Wed, 03/25/2015 - 20:46 | 5927633 Sam Spade
Sam Spade's picture

It is interesting that the imported amount continues to be so high, although about 3 million of the 7.3 million net imported per day is coming from Canada and Mexico.  Only a little over a million per day is coming from the Saudis.

Wed, 03/25/2015 - 10:45 | 5925251 101 years and c...
101 years and counting's picture

"hope filled rally".  hope of what?  or, just a short squeeze before the next big drop? 

Wed, 03/25/2015 - 11:43 | 5925490 wrs1
wrs1's picture

No hope, just certainty that the dumping will end when there is no more storage available.  At that points imports will drop drastically and the Saudi's will be wondering what to do with all that oil we don't need.

Wed, 03/25/2015 - 10:45 | 5925253 izzee
izzee's picture

Are we not still Importing Crude?

7.4mbd last week

Why?

Wed, 03/25/2015 - 11:28 | 5925430 post turtle saver
post turtle saver's picture

because the US is the largest oil refiner in the world...

Wed, 03/25/2015 - 11:31 | 5925442 Hohum
Hohum's picture

It still begs the question of why so many crude imports if demand is way down.

Wed, 03/25/2015 - 11:34 | 5925456 JRobby
JRobby's picture

Full tank farms are a great terror target. Is that the bait you are dangling? MSM puss buckets vomiting the word TERROR 600X a day 7X/WK

Wed, 03/25/2015 - 12:02 | 5925581 wrs1
wrs1's picture

But demand is up.  Production of refined poducts is up year over year while storage of refined products is dropping.  That would mean production isn't keeping up with consumption and hence consumption is likely higher than last year at this time.  That tells me demand is way up.

Wed, 03/25/2015 - 11:33 | 5925452 aardvarkk
aardvarkk's picture

Abiogenic petroleum theories aside, there really is a finite amount of the black stuff available for use in a shorter-than-geologic timeframe.  I'm all in favor of burning up other countries' stash of the stuff before burning our own.  I'd like it if we imported 100% of our oil usage until we couldn't anymore, so long as we could ramp up our own production quickly if supply was cut off.  Someone really needs to figure out realistic new methods of transportation, heating, etc. before too many more years go by.

Wed, 03/25/2015 - 11:43 | 5925489 Augustus
Augustus's picture

Many US refineries are set up to use heavy imported crude.  Most of the newly added production from the last few years does not process well in those refineries.  Still need the type of oil from Venezuela and Mexico.

Wed, 03/25/2015 - 11:46 | 5925507 wrs1
wrs1's picture

Most refineries are set up to use an API between 42-44 and they try to get as much of the most valuable products they can from each barrel.  The oil from the Canadian tar sands is API 20 and has to be mixed with LTO and that is what is coming from Cushing but it's not what refiners want.  Refiners are buying directly from the producers and going around Cushing because it's not providing what they need.

 

http://www.firstenercastfinancial.com/news/story/62107-us-refiners-turn-...

Wed, 03/25/2015 - 11:44 | 5925499 wrs1
wrs1's picture

Good question, possibly because it's being sold to the buyers at less than WTI?

Wed, 03/25/2015 - 10:45 | 5925255 Bell's 2 hearted
Bell's 2 hearted's picture

icn had expected build of 3.8 million barrels

Wed, 03/25/2015 - 10:48 | 5925265 Bell's 2 hearted
Bell's 2 hearted's picture

no one seems too interested in cutting production ... game theory

 

"Total products supplied over the last four-week period averaged over 19.1 million barrels 

per day, up by 2.9% from the same period last year."

Wed, 03/25/2015 - 11:48 | 5925516 wrs1
wrs1's picture

Did you not notice that inventory of those products supplied was flat to down?  What does that math tell you?  Consumption of those products was greater than production which was actually higher than a year ago.  You can choose to do the math and connect the dots or keep drinking doom koolaid.

Wed, 03/25/2015 - 12:03 | 5925585 Hohum
Hohum's picture

No one may be interested, but it's going to happen anyway.  EIA's WAG is production up 0.032% over the past week.  It won't be positive in a couple of months.

Now, perhaps there will be a boomlet of production from now partially completed wells.  I haven't heard, though, how much it will cost to get those wells operational.

Wed, 03/25/2015 - 10:50 | 5925271 Bell's 2 hearted
Bell's 2 hearted's picture

big miss on durable orders ... big miss on expected crude inventory

 

can't quite put a finger on what it might mean ...

Wed, 03/25/2015 - 11:16 | 5925383 Winston Churchill
Winston Churchill's picture

Something pole axed the 'economy' around xmas time.

Even my 0.1% clients have  cut their spending, and the 99.9% have stopped completely.

Sell in March, and get the hell out of Dodge before Q1 earnings start getting reported.

Wed, 03/25/2015 - 10:54 | 5925294 devo
devo's picture

Tumbles? My chart shows it is up 1.50%

Wed, 03/25/2015 - 10:57 | 5925303 zappafan
zappafan's picture

Looks like the Hopium was laced with stricnine!

Wed, 03/25/2015 - 11:03 | 5925326 thecrud
thecrud's picture

Everyone is missing the 1000 lbs gorilla in the room. The market pricing of oil is wrong because the Saudis are not even going by that price and making side deals pumping at capacity taking market share.

While we and OPEC stand by looking stupid.

You can bet Asian manufacturing will benefit from those lucrative oil contracts.

 

Wed, 03/25/2015 - 11:06 | 5925337 _ConanTheLibert...
_ConanTheLibertarian_'s picture

Massive crude oil inventory false flag attacks coming up.

- sponsored by Paul Krugman -

Wed, 03/25/2015 - 11:07 | 5925347 henry chucho
henry chucho's picture

Further analysis of these charts indicate that oil production will peak at 15 MLN B/D,once the rig count drops to zero.

Wed, 03/25/2015 - 11:10 | 5925359 spell66
spell66's picture

It seems like the market doesn't care about the build up. I wonder if we have already see the bottem.

Wed, 03/25/2015 - 11:11 | 5925364 zeronero
zeronero's picture

WTI is up. Pathetic reporting as usual.

This site is a total fucking joke. Nothing but racists and cowards.

Wed, 03/25/2015 - 11:15 | 5925377 Toolshed
Toolshed's picture

"This site is a total fucking joke. Nothing but racists and cowards."

Ok, I give up.......are you a racist or a coward?

Wed, 03/25/2015 - 11:40 | 5925480 Bunghole
Bunghole's picture

Nowhere in the headline did it say it was down for the day.  It just said it took a nosedive after the report.

Reading comprehension is hard.

Wed, 03/25/2015 - 11:15 | 5925379 MajorFall
MajorFall's picture

Its up on geopolitical tensions. Saudis fighting invading Houthi's?

Wed, 03/25/2015 - 11:29 | 5925437 StupidEarthlings
StupidEarthlings's picture

Nice chart tyler. .but you got the spelling wrong..

Im pretty sure it's    ' Doh!'

 

Regardless. ..its just psychological. ..so when oil is $300 a barrel people will be cheering.

Wed, 03/25/2015 - 11:34 | 5925457 wrs1
wrs1's picture

What does crude get turned into?  It helps to read the entire report instead of just what you want to see.

Total products supplied over the last four-week period averaged over 19.1 million barrels per day, up by 2.9% from the same period last year. Over the last four weeks, motor gasoline product supplied averaged about 8.8 million barrels per day, up by 0.4% from the same period last year. Distillate fuel product supplied averaged 3.9 million barrels per day over the last four weeks, up by 4.5% from the same period last year. Jet fuel product supplied is up 7.7% compared to the same four-week period last year.

 

Yet gasoline, distillate and jet fuel inventories have been declining the last month.  So what does that tell you?  Consumption is on the rise but production is failing to keep up with consumption which means that the storage builds will soon turn into storage draws.  

 

Here is the other important thing to note from the report.

 

U.S. crude oil imports averaged 7.4 million barrels per day last week

 

Gosh just one day of imports equals almost the entire storage build.  Where is the overproduction?

Wed, 03/25/2015 - 11:38 | 5925472 Augustus
Augustus's picture

So much for another false alarm, or is it False Flag alarm?  WTI now UP.

Maybe this was posted as a headline trying to trick some algo?

Wed, 03/25/2015 - 11:44 | 5925498 oklaboy
oklaboy's picture

on the back of absolutely nothing

with the US Fleet in the Gulf covering the Saudi's ass against the Iranians, and the Saudi's getting ready to kick some yemeni ass, I would not say "on the back of absolutely nothing"

 

 

Wed, 03/25/2015 - 12:52 | 5925789 Mi Naem
Mi Naem's picture

As of this writing, I'm seeing $48.41, up $.90 today. 

Looks like we're back in business for the next repression attempt.  There certainly does seem to be some serious determination here. 

Wed, 03/25/2015 - 15:07 | 5926380 Deathstar
Deathstar's picture

The question everyone should be asking across the country is this...

WHY IS GASOLINE NOT UNDER 1.80 A GALLON ACROSS THE COUNTRY?

Secondly,

WHY IS DIESEL (Which is the second crack off the refining tower and dirt cheap to produce) STILL MORE EXPENSIVE THAN GASOLINE.

The petrol companies have a masterful disinformation/ lie campaign going. I know, my father worked for them for 42 years.

IT IS CALLED COLLUSION, PRICE GOUGING, AND FRAUD!!!!

Do NOT follow this link or you will be banned from the site!