Crude Spikes After Biggest Inventory Draw In 2016

Tyler Durden's picture

WTI's 'mysterious' spike into the NYMEX close extended after hours (almost as if someone knew something). Inventories drewdown 4.6mm barrels according to API (drastically less than the expected 2.85mm build). This is the biggest weekly draw since Jan 1. Cushing was expected to see a build of 100k (after 2 weeks of draws) but saw a considerably larger one at +620k. Distillates inventories built as Gasoline drewdown very modestly.

API

  • Crude -4.3mm
  • Cushing +620k
  • Gasoline -116k
  • Distillates +2.7mm

Ending the 7 straight weekly build streak...

 

And the reaction...

 

Charts: Bloomberg

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Boris Badenov's picture

Somebody knew something? Are you kidding? YES, the operators of the storage facitilties know something everyday they go to work! What, do you think these levels in the tanks change once a week, overnight when nobody is looking?

trader1's picture

who's behind this oil leak?

KesselRunin12Parsecs's picture
KesselRunin12Parsecs (not verified) trader1 Apr 5, 2016 4:18 PM

"Crude Spikes After Biggest JEW BANKER PAPER ALGO commodity board LEVERAGED TRADE REVERSAL using money counterfeitted by the jew owned & operated FRB & chaired by a Dutch Boy haircut, nasal~speaking Yenta run ~ In 2016"

 

There ~ fixed it!

Ink Pusher's picture

@KesselRunin12Parsecs

Try some milk in your morning cereal instead of bathsalts ,baby's blood and beer .

I can guarantee It'll improve your outlook for the remainder of 2016 immensely.

Ink Pusher's picture

Heh, heh, The question really is ; Did the alleged drawdown actually physically occur at all or was it just a quick edit to the inventories to make it appear as such?

Take it from an Ink Pusher, what you see on the surface of the skin, doesn't always match up with what's actually underneath it.

Boris Badenov's picture

True, I'm thinking about Fort Knox...

PPT Inc.'s picture
PPT Inc. (not verified) Apr 5, 2016 3:45 PM

Hey I was busy. I'm back now.

RogerMud's picture

the mainstream press kept talking about the damn "oil glut."  There is no oil glut, US rig count is half what it was a year ago, and there is now more than a few days extra supply in storage.

The people that "knew something" are the simply people that have been trading CL for the last 30 years.. and yes they know a lot of things.

venturen's picture

really.....there is more oil in storage than any time in the last 80 years! $150/barrel oil was a complete fraud to steal as much as possible from consumers....and technology advanced to make it cheaper to extract....you have a decade of oversupply ahead. USA oil demand is DROPPING and supply is growing!

RogerMud's picture

US consumes about 19 million barrels a day. current storage is about 100 million barrels above the 5-year average, so that's about 5 days supply. put another way, if production were to drop off by 1 million barrels (and it already has) the "glut" will be gone in 100 days.

production is not growing, it's actually shrinking.

Ink Pusher's picture

US production is shrinking while the Middle East is ramping up production.

The reason is those companies not facing insolvency are cutting and not spending.

Waiting patiently for their respective competitors to become vulnerable and ripe for acquistition.

Such is the way of things in the capitalist world , especially our wonderfully cannibalistic oil markets. 

Arthur's picture

The issue is storage and Cushing is almost full.

Still Losing Money's picture

Suadi Arabia and Russia just had RECORD production months, Iran is coming back on line after months of sanctions, there are HUNDREDS of tankers sitting offshore full of crude because there is nowhere to put it, production is NOT going down, but demand is, slow grwth in china, japan and europe in recessions, US to show ZERO grwth in GDP this quarter...... oil is over priced and the glut is getting bigger with no chance of diapppearing in 100 days

Travis M Sawyer's picture
Travis M Sawyer (not verified) venturen Apr 5, 2016 4:23 PM

BINGO

 

Oil & Usury...........Rockefeller & Rothschilds...........get it now?

Jethro's picture

Cushing has been pretty full for awhile now.

Spike, short squeeze, spike, short squeeze, spike......

Geezer Oil Trader's picture

The easiest way to gain or lose crude oil in storage is by use of a pencil. Just ask the fucks who trade natural gas. They've been doing it since Enron and Dominion. When I walk by the gas desk in our shop the youngsters all look at me like the neighborhood cats do when I'm out walking my dog "Pinky" who is named after Marc Rich's partner.

Hohum's picture

Fewer crude oil imports, no doubt.

NoWayJose's picture

I see a greater chance of the overall market heading down (a bit) and dragging oil down a little more when it goes. I certainly won't be chasing this up blip.

outlaw.guru's picture

How about it's finally nice weather in moderate USA and people are travelling for holidays. Very misterioussssss :D

d_taco's picture

I have never seen oil going up or down in after ours. 1% up when markets are closed? it never happens before.