WTI Spikes Above $49 After Shockingly Large Crude Inventory Drawdown

Tyler Durden's picture

After four weeks of draws, expectations were for a 1.5mm inventory build this week but API reported yet another shockingly large draw of 7.6mm barrels. A susprisingly large build in Gasoline last week briefly confused traders but was confirmed by API with a 2mm barrel build (against exp of +500k). WTI crude spike back above $49 on the news...

 

API

  • Crude -7.6mm (+1.5mm exp)
  • Cushing +400k (+100k exp)
  • Gasoline +2mm (+500k exp)
  • Distillates -1.3mm

5 Weeks of Crude draws at a seasonally 'building' time of year...

 

Since last week's API data Crude has ripped higher on an aparent OPEC deal... and knee-jerked above $49 after API data dropped

 

Charts: Bloomberg

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Fester's picture

We keep falling for the banana in the tail pipe trick.

wisehiney's picture

Squeeze plays.

Be patient and get a bargain.

TLT and phyzz.

Come babe, come babe.

alangreedspank's picture

I bought SCO at around 44 oil, I'm willing to hang on to it. When everything starts to spin down the tube due to the DXY going up, the Fed will turn dovish again and TLT should have another leg up IMO

BingoBoggins's picture

DWTI under 63 after hours today. Still, I can't shake this sense of doom ...

Cluster_Frak's picture

How much does this have to do with the hurricane?

GUS100CORRINA's picture

Storm probably a factor ... but I believe this is pressure from BANKS to shore up balance exposure by reducing default rate of E&P companies

MORE MANIPULATION ... MORE CB INTERVENTION ... MORE CORRUPTION ... MORE THEFT!!!!

THE DATA IS COOKED!!!!

HOW MUCH LONGER IS THIS GOING TO CONTINUE? PROBABLY FOREVER UNTIL WE GET TO A DAY OF RECKONING AND EVERYONE IS FORCED TO COME CLEAN REGARDING THE LIES!!

Ludwig Van's picture

 

The fix is in. Those oil guys simply aren't putting it where they used to, but the report guys keep looking there anyway.

 

Seasmoke's picture

I wouldn't be surprised to read a headline that the world is ending tonight at midnight.

silverer's picture

I promised I'd tell my joke if ZH ran another "unexpected oil" story. Everything about the oil business seems to run on unexpected events. Anyway, here goes:

A Chinese man and his wife came to America. He was a diligent, hard working man and just needed a chance to get started someplace. He had a cousin that got him a cleaning job in a large corporate building. On his first day, they explained what his job would be, and showed him around. He saw where the cleaning equipment, storage areas, bathrooms, and other places he would be attending and maintaining. At the end of his first day he didn't come home as expected. His wife was concerned. She called the cousin, who said he seemed to feel at home there, and not to be too worried. He'll show up soon. But another hour went by, so they decided to go to the building and search for him. They looked in every room, hallway, bathroom. No sign of him. Finally, they checked the last place, the storage closet. When they opened the door, he was standing there with a big smile on his face, as shouted out "Supplies!"

OK, back to the oil...

RealistDuJour's picture

Zerohedge challenge... How many weeks in a row can we call these oil drawdowns "surprising"??

Still Losing Money's picture

and the number of oil patch BKs drops.  gee wonder why the booyah inventory numbers..not

Infield_Fly's picture
Infield_Fly (not verified) Oct 4, 2016 4:12 PM

yellen is still shove tankers up her cunt - avoids the inventory count

Last of the Middle Class's picture

Massive inventory draw down for gasoline in October??? WTF going to wallyworld for first of the month card groceries? What a crock. Pump and dump by any other name.

adr's picture

Every refiner is making as much gasoline as they can. Margins have never been higher. RBOB is trading $.60-.70 rich to a barrel of oil. For an industry used to single digits the current margins are like fucking the prom queen every night who miraculously never ages and lets you put it anywhere.

Still Losing Money's picture

50 bucks a barrel is break even for a HUGE number of energy patch loans and finacial scams.. so we will get rumors and bs data to keep WTI at or near 50 bucks. just like any time the mkt sells off we get a QE rumor 

PhiBetaZappa's picture

Where's the laugh track to go along with this headline.

You're slipping Tylers.

SweetDoug's picture

'
'
'
'
When do we find out they're lying about the numbers on this, too?

•?•
V-V

And who do they tell to front run this?

south40_dreams's picture

Rumors kept DB alive for one more weekend

venturen's picture

let me guess. we imported a million barrels a day less and exported a million barrels a day more. The absurdity of oil is only eclipsed by the stock market 

adr's picture

so do I get to pay $100 barrel gasoline prices next week? In PA I saw $2.59 gas and $2.99 diesel. It is conceivable that we go over $3.00 on $60 oil. $100 oil will cause a doubling or perhaps more in RBOB putting gas over $5.00.

The deep screw by the tribe knows no bounds. Your safe word just means shove it deeper.

hedgiex's picture

BS data with stage shows to keep the papers shuffling. All are enticed to go to this oil table in the casino to provide the liquidity and that's when the liquidity dries up. Then the next table as the shows must go on. Beware of the puppet masters.

Zepper's picture

You have consumption plateauing and or declining. The refineries are closing down to switch over. There should not be any increases to the amount of oil being used. Someone has figured out how to game the system again. Now that its legal to move oil onto barges, and hide that oil a few miles off coast, who wants to make a bet that there are tankers full of oil just sitting on the ocean?

I have been watching this oil market for decades and this makes absolutely no sense... there is some kind of cheating going on GUARANTEED!

Sorry_about_Dresden's picture

They are building tankers hand over fist 'cause they are running out of places to put all the crude they are pumping.

Very interesting to see the correlation between the market indexs and crude break down, and to see yields shoot up! 

WTF is going on?????

Is the market going to react to the RMB inclusion to the SDR???

How the heck do we track that? The PRC is much more disiplined in their currency creation, so I have read. I know they over produced, but I don't think the Chinese need to control<p> like the Feral Reserve. 

I am waiting for the machine to break down. 

Look at this chit from the Feral Reserve: 

https://apps.newyorkfed.org/markets/autorates/tomo-results-display?SHOWM...

$400,000,000,000 in overnight Reverse REPO!!!! That is a staggering amount of money! 

Deal Date: Friday, September 30, 2016 
Delivery Date: Friday, September 30, 2016 
Maturity Date: Monday, October 03, 2016 
Type of Operation: Reverse Repo 
Auction Method: Fixed-Rate 
Settlement: Same Day 
Term of Operation - Calendar Days : 3 Days 
Term of Operation - Business Days : 1 Day 
Operation Close Time: 01:15 PM 
Participating Counterparties: 83
Accepted Counterparties: 83

Results Amount ($B) Rate (%) Collateral Type   Submitted Accepted   Award3 High   Low     Treasury 412.523 412.523   0.25 N/A    N/A     

 

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Tom Green Swedish's picture

Ok what's really going on with the oil price? Seriously. Everything else is fucking soaring besides energy.