Oil Dumps'n'Pumps Despite Crude, Gasoline Inventories Surge

Tyler Durden's picture

Crude has soared back above $31 as it seems a new bullish narrative around seasonally high crude refining has sparked dreams of demand...


As we detailed earlier...

After initial weakness, crude prices have rallied since last night's across the board inventory build reported by API (especially gasoline). Against headline expectations of a 3.8mm build, DOE reported a huge 7.8mm rise with Gasoline also surging 5.9mm barrels. The overnight ramp gains on OPEC rumors have been erased and WTI is back below $30.


API reported:

  • Crude inventories: +3.8M barrels
  • Cushing +0.1M barrels
  • Distillate +0.4M barrels
  • Gasoline +6.6M barrels

DOE reported:

  • Crude inventories: +7.79M barrels (whisper 3.8m)
  • Cushing +0.75M barrels
  • Distillate -0.78M barrels (whisper -0.26m)
  • Gasoline +5.9M barrels (whisper 5m)


Production fell very modestly for the 2nd week in a row...


WTI dropped after API then ripped on more OPEC-Russia chatter... only to fade after Dudley's comments failed into the DOE data...


And finally, don't forget that U.S. crude inventories are at levels last seen when President Herbert Hoover was battling the Great Depression.






And finally for those who exclaim this is just a supply issue - it's not!!!



Charts: Bloomberg

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Jason T's picture

not to mention gasoline demand is down some 4% y/y ... millienials ain't driving bitchez.. they're broke. 

hedgeless_horseman's picture



I have an idea where 33 Liberty can store all that oil they just bought.

We reverse the Trans Alaska Pipeline, and start pumping it back into the ground!

Krugman would certainly approve, essentially digging holes, and then filling them back in.


froze25's picture

Don't forget that last year it was way colder in the north east and there was way more snow that prevented people from driving. So more home heating oil consumption (you would think) and far less Gasoline consumption. This 16% drop in demand for 2016 is very telling that overall activity is way down.

RockRiver's picture

Crude now making new highs on the day.....Tylers needs to wait and see if the stats are faded, as they often are.....

Rainman's picture

Like it ! .... Highest since Hoover tm

RockySpears's picture

Yeah.  Guess we will all just have to suck it up!

MSimon's picture

Debt is the banker's real power.

franzpick's picture

HayZooos: Seats and tray tables to the throw-up position. The fed wide-body is going down thru severe turbulence, with 2 turning and 2 burning:


DogeCoin's picture

And the farce goes on. How many fucking times do the rumors have to be denied? Saudi and OPEC are not going to cut any deal with the Russians PERIOD.

sun tzu's picture

Sauds will not cut with Iran ramping up. Iran definitely will not cut after they were forced to cut from 2.5mbpd to 1mbpd for the last few years. Does anyone seriously think Iran will cut under 1mbpd? Merely another oil pump and dump. I'm at 90% cash so let them play their games

pmsacco's picture

"Boy we could use a man like Herbert Hoover again..."

manofthenorth's picture

"What are you talking about meathead ?"

RealistDuJour's picture

Gartzero, can I play??!!?

Oil SURGES ABOVE $30 on Zero's kneejerk headline!

Chuckster's picture

Isn't this awful?  The Sauds must be frantic.

FreeShitter's picture

Agos gone wild....WTI up over 31 now lol

BurningBetty's picture

Lol, some bitch obviously bought too many long contracts in oil, and despite crappy numbers they are pushing the price up so they can exit. Let's just hope one of these fucktards chokes on a chicken bone tonight.

Vlad the Inhaler's picture

We lubed some traders this morning.

Rubyc's picture

Isn't market manipulation a felony? 

This is the most obvious manipulation since 9/11

FreeShitter's picture

If you are a member of the tribe, then no....this is tradition.

NoWayJose's picture

Whether real or imagined, at some point the banksters' computers will find a pattern they like, load up on leveraged financial instruments, and drive paper oil higher, regardless of fundamentals or supply or demand for physical oil. Just like gold, they do this - because they can!

Canadian Renegade's picture

Pretty much.


They basically broke the back of all the long gold speculators to the point where nobody bothers anymore knowing their stops will just get run.

Now it's happening in oil only in the reverse direction. If you short you get your ass reamed over and over till you have had enough.

Prices are whatever the bankers say it is.....

BurningBetty's picture

"Hey John...can't you just go out on twitter an say something about refinery numbers? Anything will stick. Just something".


All is chosen's picture


NoWayJose's picture

These constant 'bounce backs' represent the struggle between longs and shorts. The bounces, to me, indicate big banks trying to load up on the long side. This element was missing during the plunge from $100.

allamerican's picture

CL is up and mrkt is down.  not exactly everyone little thesis huh.  oil up is shit for consumer period..


you lose........

lester1's picture

Clearly the NY Fed is manipulating the oil futures market.

Who else is powerful enough to get away with it?

lester1's picture

Will the Fed be dumping the oil they just bought back into the ocean? 


Or will they be storing it at 33 liberty street?

R-Squared's picture

Crude seems to rally no matter what is reported by API and DOE. 

E.Shackle.Ton's picture

I'm guessing the repudiation of the laws of physics are next in line.

francois's picture

Remember "Twilight in the Desert?". Think that maybe Saudi Arabia is bluffing and is pushing a "last gasp" in production - going all in?  You too can be a high stakes gambler and make a profit :-)

Of course, I do not know either, but it is an interesting angle to all this.



Panic Mode's picture

Oil is bump and hump all over the place.

Wahooo's picture

Moves on every rumor of Russian / OPEC production cutbacks. Might be a great time to sell or short.

Pasadena Phil's picture

If the price of oil was being determined by supply and demand, the price would be far higher than it is now. Instead, it is being set to accommodate the  "expectations" speculation that dominates the market over "contract for delivery" market.

Herdee's picture

Ramping it up just to hedge again for the next downside move.

lunaticfringe's picture

It's all about the petrodollar.

Dollar getting hammered, finally, and oil and gold up. Same as it has been for years. Wish Tyler would print charts showing that inverse relationship.

R-Squared's picture

I love the smell of a short-squeeze in the morning. This rally cannot last.