WTI Crude Slides As US Production Soars Most In 18 Months

Tyler Durden's picture

DOE reported a bigger than expected crude build (+2.432mm vs +2mm exp) but smaller than API's reported 4.4mm build, but DOE reports a considerably smaller drawdown in the products side (gasoline and distillates). Cuhsing saw a small build but US crude production soared 2% on the week - the most since May 2015.

API

  • Crude +4.40mm (+2mm exp)
  • Cushing +156k (+300k exp)
  • Gasoline -2,841k vs est. -1,500k
  • Distillates -4.3mm

DOE

  • Crude +2.432mm (+2mm exp)
  • Cushing +28k (+300k exp)
  • Gasoline -2.841mm (-1.5mm)
  • Distillates -1.948mm

Other observations:

  • PADD 3 crude -1,028k
  • PADD 1B gasoline -1,466k
  • PADD 1 Distillates -920k
  • Refinery utilization +1.9 ppt vs est. +0.5 ppt
  • Refinery crude inputs +369k b/d
  • Crude imports -1,553k b/d to 7,442k b/d vs 8,995k, -17%

Imports by region:

  • PADD1: 621k vs 1,164k
  • PADD2: 2591k vs 2538k
  • PADD3: 2911k vs 3814k, -24%
  • PADD4: 383k vs 344k
  • PADD5: 937k vs 1135k

Imports into U.S. by country in b/d:

  • Canada imports 3206k vs 3282k
  • Saudi Arabia imports 1295k vs 1170k
  • Venezuela imports 533k vs 835k
  • Mexico imports 515k vs 688k
  • Colombia imports 33k vs 602k, lowest on record, since June 2010
  • Ecuador imports 278k vs 156k
  • Nigeria imports 113k vs 345k
  • Kuwait imports 97k vs 85k
  • Iraq imports 427k vs 645k
  • Angola imports 64k vs 30k

7th weekly drawdown in distillates inventories as crude built for a second week (note that DOE product drawdowns were smaller than the API reported ones)

 

Gasoline stocks fell 2.8mmb/d to 221mm, back to only 7.7mm hhigher compared to 2015 and 16.6mm vs the 10 year average according to Reuters.

The drop in imports from 9.0mmb/d to 7.4mmb/d confirms that the surge in crude imports in the October 28 weeks was due to a surge in tanker arrivals.

But the big news a massive surge in US Crude production - the most since May 2015 to its highest in 6 months...

 

And the reaction is a modest slide for now...

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SomethingSomethingDarkSide's picture

Can The Dutch Boy save the Dyke and stop The Flood?

 

 

chrsn's picture

Too late to save the Dyke.  Trump won

LawsofPhysics's picture

Don't think algo...  buy the fucking dip!

i'm-confused's picture

& WE GO GREEN ON THE NEWS AS PER USUAL WITH ZH - THANKS

King Tut's picture
King Tut (not verified) i'm-confused Nov 9, 2016 12:01 PM

Everything has been whipsawing all day- don't get your panties in a knot

King Tut's picture
King Tut (not verified) Nov 9, 2016 11:59 AM

Production up in anticipation of Trump victory parades

Sick Underbelly's picture

Somebody in the chain needed payment, so the production ran.

Maybe some investors were being shopped and *they* needed to run some rigs nearby to make it look all frilly that "we're doin' summin...so pay us!"?

This chart seems to be showing last week's production.  What things went on two weeks ago that could be tied to the decision to increase production last week? That's probably the likely answer.

Cult of Criminality's picture
WTI Crude Slides As US Production Soars Most In 18 Months

 

Thought just friday it was the opposite

LOL

Cult of Criminality's picture

DOE vs API

GREAT FOR STOP KNOCKING

dlfield's picture

Does chart #55 mean our gas will be cheaper tomorrow?

Last of the Middle Class's picture

Suddenly production soars the most in 18 months the day after The Donald is elected?  Yeah Right!!!

Fed-up with being Sick and Tired's picture

You can count on a ramp on this sort of news, squeezing shorts. Don't ask me why I know.

Sapere aude's picture

U.S. production soars....yeh right. Sores more likely. There is no way on this planet that U.S. oil production is rising. Its a physical impossibility.

Legacy shale wells make it an impossibility, and with the decline in drilling U.S. oil production is dropping, no doubt about it. Physically impossible for production to be rising.

Since when has the word soars equated to just 2 per cent, but even that is not true.

Decline rates on the shales have meant production cannot rise. In the Eagle Ford they sweet spots are all used up, and with over 10,500 wells already in there, the amount of new wells that are needed just to replace legacy losses are immense, and the Red Queen Syndrome has now fully kicked in, so it will never be possible to raise production on these fields. It will require new fields, and who is going to finance them when NOT ONE shale operator has shown a real profit. They have chased oil paying $1.50 for every $1 of oil that they have produced, hence the bankruptcy queues.

Even the big players have only been kept alive by ZIRP AND NIRP policies, selling assets, or issuing more stock.

 

yngso's picture

It's the poverty effect: They produce as much as they can because they need cash, although that causes the price to fall eventually.