WTI Slides After Bigger Than Expected Builds Across The Oil Complex

Tyler Durden's picture

After two weeks of large crude and gasoline builds, API reported bigger than expected builds in crude, gasoline, and distillates (and smaller than expected draw in Cushing) which sent WTI prices tumbing, crossing back below the $53 Maginot Line once again.



  • Crude +2.93mm (+2.5mm exp)
  • Cushing -145k (-500k exp)
  • Gasoline +4.85mm
  • Distillates +1.95mm

The 3rd weekly build in crude in a row and 4th large gasoline build in a row along with a smaller than expected draw at Cushing...


And this comes on the heels of the biggest rise in rig counts in 3 years and surge in production...


And after a day dominated by Iraq production cuts, border tax implications, and US/Canada pipeline discussions, the inventory reaction in WTI was an immediate drop to a $52 handle...


Crossing that crucial $53 Maginot Line...

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skunzie's picture

What's up with these "bigger than expected builds" or "bigger than expected draws"?  Can't the agency charged with monitoring this on a regular basis figure it out?  Afterall, they've only been doing it for the past 50 years or so.  

If you can't figure it out, step aside children and let the adults assume control. . . . bunch of libtard idiots.

hotrod's picture

Agreed have you ever seen a more manipulated BS indicator

M O B's picture

You should probably do 10 minute of googling and learn exactly who the API is, and how "expected" builds or draws are calculated.

It will save you from looking like a moron who lets politics short-circuit reality. 

NoWayJose's picture

Goldman called it! Or wrote it! Or both!

OfAllElaboratePlans's picture
OfAllElaboratePlans (not verified) NoWayJose Jan 24, 2017 5:15 PM

A simple case of ... Not enough counterfeit joobux floating around to chase after the counterfeit joobuck 100x leveraged 'paper' oil contracts...


Dammit Janet!



south40_dreams's picture

What is holding the price of oil up?

King Tut's picture
King Tut (not verified) south40_dreams Jan 24, 2017 5:05 PM

The same thing holding everything up- trillions in freshly printed dollars sloshing around the globe looking for a little yield

Escrava Isaura's picture

Hard for most Hedgers to accept this reality that “It’s the money, stupid” when most are not part of it.

Wonder if the new President will get the money to them.

And how.

Because cutting regulations and immigrants won’t be enough.

Not even close to be enough.


QEpp's picture

So based on this, biotechs should be up tomorrow.