Oil Bounces On Unexpected Cushing Inventory Draw

Tyler Durden's picture

Following last week's surprise build in overall crude inventories (after 9 weeks of draws), API reported a smaller than expected drawdown (-1.34mm vs -2mm exp). However, oil prices are extending late-day gains as Cushing reported a major 1.3mm draw (against expectations of a 1mm barrel build). Gasoline drew down but Distillates built.

API

  • Crude -1.34mm (-2mm exp)
  • Cushing -1.3mm (+1mm exp)...Genscape reported a small (<100k) draw for Cushing.
  • Gasoline -450k (-1mm exp)
  • Distillates+593k

10th weekly draw of last 11 in crude but it was the Cushing draw that was the biggest driver...

 

And crude, having faded all day, rallied into the NYMEX close and NYSE close and is extending gains on the API data...

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wisehiney's picture

It's a slippery slope.

Hohum's picture

Let's ban all crude oil imports.  Inventories will normalize quite quickly.

adr's picture

It won't matter. More than half of the oil refined in the US is for export. If we ban imports I'm sure exports will go nowhere as other countries will ban imports from us.

The USA can still have excess supply if all oil produced in the USA was earmarked for domestic consumption.

The world is massively oversupplied because every oil producing country needs the revenue, even if oil was $1 a barrel because there simply is no real economic activity going on. 

If they don't drill everything stops. 

Hohum's picture

OK, but not true.  Do you know how many barrels the USA imports daily (over 8 M)? Do you know the total products supplied per day (20 M)? That's a lot of refinery gains.

 

Moreover, imports way up year over year.  Let's conservatively say 5% or 400,000 barrels per day.  That's 146 million barrels per year.  Take that away and inventories are..blah.

But you're right that if (they) don't drill everything stops.  And so it will eventually.

silverer's picture

Another "unexpected cushing draw". After 150 years of managing energy logistics, we still have "unexpected" usage. No IBM super computer or any genius alive could possibly anticipate it, right? Thank goodness for "surprises"! Oil is up!

JRobby's picture

I apologize, I threw 12 gal. in the tank yesterday.

FUCKING LIARS!!!!!!!

ElixirMixer's picture

That's why ZH reports the Genscape number. Google them.

natxlaw's picture

Silverer eh? You stackin?

Infield_Fly's picture

BOE, SNB, Fed, PBOC, ECB, BOJ

 

hmmm....which one did...or maybe they all did

MountainMan's picture

Hahahahhah....bounces...see you at 37.50 tomorrow.

adr's picture

Weekly numbers are bullshit and completely useless. Oh sorry Jew bank algos can use the numbers to scam money trading contracts that never correspond to an actual barrel of oil.

Do we still have record oil in storage? Yep.

Is pad one still oveflowing with gas? Yep.

Put a $.20 tax on every oil trade and end this HTF bullshit that costs me $.60+ on every gallon when I fill my tank. 

Aren't the refiners switching to winter gas? They need to draw more oil to do that. They'll end up blending some of the summer stock with it, but that means less gas will need to be refined for the winter season. No matter what we still have a glut, but the JWO won't let us have market based prices.

ilovetexas's picture

Play the data game. Oil price can buoyant S&P. So don't expect oil price to go very low this time. Range bound 40 to 50

natxlaw's picture

Bullshit Bullshit Bullshit!

 

Or as my 5 year old would say, "that's not so."

 

Or as my 3 year old would say, "Shennanigans" or "Balderdash."

natxlaw's picture

Honestly look how much volume is there, or should I say not there, on that draw upswing. They do skydiving out of that little airport in Cushing, maybe they can't see a draw until someone gets up to 10K and goes Jeroneeemo, so that is why we get an "unexpected draw" everytime oil is on a tare to its just equilibrium.

venturen's picture

hedgies pump into offbook storage and back again...does any tire of this? It is growing month in and month out!

highwaytoserfdom's picture

 

largest usere of oil in world USAF second USN 

last budget paid in SPR

USSA USSA USSA

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