Crude Tumbles After Big Crude, Distillates Build

Tyler Durden's picture

Having extended yesterday's losses on the back of API's unexpectedly large distillates inventory build, DOE data confirmed an even bigger crude inventory build (+2.276mm vs ~1.3mm build exp.), which contrary to seasonal patterns was the second build in a row, and 5 builds in the past 6 weeks. Gasoline drew down less than API reported and Distillates built considerably more than expected (+1.5mm vs +275k exp). While production slipped lower by 0.7%, crude prices tumbled on the inventory news, back down to $45.50.

API

  • Crude +942k (+1.5mm exp)
  • Cushing -620k
  • Gasoline -1.6mm (-1.25mm exp)
  • Distillates +3mm (+275k exp)

DOE

  • Crude +2.276mm (+1.3mm exp)
  • Cushing -1.039mm
  • Gasoline -691k (-1.25mm exp)
  • Distillates +1.496mm (+275k exp)

The crude breakdown by region:

  • PADD1 20.259mbbl +0.143
  • PADD2 151.032mbbl -1.403
  • PADD3 275.55mbbl +2.911
  • PADD4 26.974mbbl +0.243
  • PADD5 52.055mbbl +0.381

And gasoline:

  • PADD1 67.178mbbl -1.936
  • PADD2 49.859mbbl +1.497
  • PADD3 78.513mbbl +0.555
  • PADD4 6.578mbbl -0.395
  • PADD5 29.876mbbl -0.411

Also notably, on a seasonal basis, Gulf Coast and East Coast crude stocks just hit reacord levels.

Chart, the second weekly build in crude and a big build in distillates looks as follows:

Also of note, the weekly crude oil imports rose to the highest since September 2012, adding to the glut.

Looking at gasoline data, we find that gasoline stocks are now +17.8 million bbl (+8.3%) above 2015 level and +24 million bbl (+11.6%) above 10-yr median

 

The accelerated shift of gasoline from the East Coast appears to be working, as a result of the abovementioned 1.9mbbl drop from PADD1:

 

Finally, looking at overall US production, after a big surge in production two weeks ago, it has now been largely erased following the last 2 weeks declines:

 

And having tested down to a $45 handle, crude inched above $46 ahead of the print then plunged...

 

Charts: Bloomberg

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buzzsaw99's picture

I told you never to call me on the golf course! What's that? Then sell! They're all selling? Then buy! [/al czervik]

DeadFred's picture

WTI is making a nice head and shoulders targeting $28 should it break. We have a few weeks left to watch.

Leatherneck59's picture

Quick call Venezuela start the headlines

Leatherneck59's picture

Quick call Venezuela start the headlines

Hohum's picture

Imports 8.9M barrels per day.  Let's go for 9 M!

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

stocks up everything else down's picture

If we are building these kind of stocks in the peak driving season, what is it going to be in a couple of months? Can anyone say $20 oil.

Joe Sichs Pach's picture

Today, fundamentals win.  Kinda

 

Tomorrow?  Anybody's guess

heisenberg991's picture

I'm on a quarter of a tank left, need gas to hit 2.10 or below now.

Global Hunter's picture

About 42 they float rumours about Iran agreeing to OPEC cuts?

edit: by "float" I mean print headlines in the mainstream media

heisenberg991's picture

WSJ will tweet this rumor at midnight so gas prices can rise for the weekend lol.