After a weak day in the energy complex driven by yuuge IEA output forecasts, and following last week's continued trend of large inventory builds, API reported a shockingly massive 14.27 mm barrel build (2.5mm exp). This is the 2nd largest weekly build in US history. The reaction in WTI and RBOB futures was immediately obvious as the former plunged below $52 and the latter below $1.4750.
- Crude +14.27mm (+2.5mm exp)
- Cushing +624k
- Gasoline +2.903mm (+1.5mm exp)
- Distillates +1.373mm
The sixth weekly build in gasoline in a row... and a big build at Cushing...
But what really matters is the utterly massive build in crude inventories - the second bigest in history if the API data holds true for DOE data tomorrow
IEA forceasts sparked weakness into the API data all day (WTI dropped below is 50DMA and RBOB below its 200DMA)... and the API data sparked immediate selling pressure...
With WTI/Brent net positioning at record longs, we wish speculators luck.