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Crude Extends Gains After API Reports Unexpectedly Large Inventory Draw
Following last week's huge build reported by DOE, crude inventories reported by API tonight dropped 3.6 million barrels (drastically different from the 2.3mm build expected). WTI is rallying on the news, despite a 1.5 million barrel build at Cushing (up notably from last week's 847k) - the 7th weekly build in a row.
Total Inventories saw a drawdown...
But Cushing saw the 7th weekly build in a row...
The reaction was modest as algos came to terms with the 'build' at Cushing, the 'draw' overall, and the strength of the Brent 'arb'
Charts: Bloomberg
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Let the mindless algos try to interpret this as bullish for WTI:
Warmest Christmas Eve on record to unfold across eastern US
By Kristina Pydynowski, Senior Meteorologist
December 22, 2015; 3:03 PM EThttp://www.accuweather.com/en/weather-news/christmas-eve-record-warmth-n...
More of a NG mover than oil, don't you think?
In the grand scheme of things, that may be true. Heating oil (a derivative of crude oil that is used heavily in the northeast) is affected directly by mild winter weather.
http://marketrealist.com/2015/12/natural-gas-prices-sink-forecasts-warm-...
The major trends have broken. Will take years to fix the trend http://hedgeaccordingly.com/2012/08/quick-look-at-oil-monthly-and-hourly...
Most of the northeast still uses heating oil
Well, maybe Gartman was right at least once this year.
rigrht abouut what? he has switched position in oil 10 times or more in last 3 months,,and he tells everyone where his STOPS are and like a game they run it uup or down to stop him ouut...he is the laughing stock....he is long bullshit in yen terms
3 ships just filled up to ship to virgin island or some other "non export" hug to be refined and shipped onwards.
Refilling tanks after Thanksgiving trips.
Guess how much inventories have increased YOY. Answer: about 110 milion barrels (6 days US consumption). Production about level YOY, as opposed to meteoric rises the past few years. Imports of crude oil about the same YOY. If production falls about 4-5% in the USA next year and imports are about the same, this excess may disappear faster than we can imagine.
Oil is a global commodity. Imagine the excess when China collapses.
You do have a point though. If the entire US stopped pumping and importing oil, that excess would be gone in 6 days. If the entire world stopped pumping oil, the excess would also be gone. Good point.
with IRAN,,RUSSIA,,LIBYA, SAUDI ARABIA, ANDD IRAQ all saying they are increasing production,,HOW IS EXCESS GOING TO DISAPPEAR.. 25 dollar crude coming soon...by end of april
The Fuck do these analysts do that they are always surprised? From month to month, always getting surprised with more inventory than expected or, SHOCKER, less inventory than expected.
They're worse than meteorologists.