WTI/RBOB Plunge After 2nd Biggest Crude Inventory Build In US History

Tyler Durden's picture

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.

 

API

  • 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.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Newbie lurker's picture

Unfortunately I think they are net long because they expect a war. I hope they are wrong in their speculation.

FreeShitter's picture

The problem with "hope" is, its not a sound monetary policy.

BandGap's picture

Been building up for about 2 years.

Move equipment to eastern Europe, build up oil inventories, bring businesses back on shore.

Fortress USA

Liquid_Silver's picture

More production cut meeting announcement please! The retarded oil traders will buy this dips again! Works every time

Monopolist's picture
Not "expect" though, they "know". 
buzzsaw99's picture

president assholio can fix this!

FreeShitter's picture

Where's rex? Where the hell is rex????

buzzsaw99's picture

Chas: I have got a really bad cramp. I've been having really bad cramps all week.

Jason Melon: It's probably menstrual.

Chas: Screw you, Melon!

[/back to school]

buzzsaw99's picture

I am The Great Cornholio. I need TP for my bunghole. [/preznit beavis]

BlueHorseShoeLovesDT's picture

In Russia getting the pee pee show

sinbad2's picture

Rex, here boy, here boy, got a bone for ya.

BlueHorseShoeLovesDT's picture

Cornholio was a better President.

sun tzu's picture

Only an idiot thinks low oil and gas prices need to be "fixed" higher lol

Rainman's picture

Now can we quit talking about that stupid OPEC quota nonsystem...?

Government needs you to pay taxes's picture

OPEC: We have agreed to collude to set prices high.

US shale oil: Blow it out your ass.

1stepcloser's picture

there is nothing a devaluing dollar can't fix.

Barney08's picture

Looks like we're gonna need another OPEC meeting.

BlueHorseShoeLovesDT's picture

Wow, supply and demand works???

adr's picture

Wow, more oil than when it was $26 and gas went below $1 in some places, BUT oil is $52 and gas $2.40.

FUNDERMENTALS!

kidbroge's picture

 If an economy is hot oil should be burnin and it ain't, big time. Then why is the market so high? Can this huge number in the face of an OPEC cut mean anything, is this a sign? A number this big hasn't been seen since the early seventies when the economy was really shitty. Something's gotta give, it can't keep going on like this. Economics 101 must eventually kick in, or should I stop being a worry wart and enjoy the ride because it isn't showing any signs of stopping.

Dark Daze's picture
Dark Daze (not verified) kidbroge Feb 7, 2017 8:14 PM

Ask the zionists, they run everything.

Beam Me Up Scotty's picture

Economics 101----LOL.  As long as the Fed is in control of the value of a dollar bill, then Economics 101 is meaningless.  Or whatever the Fed says it is.  They could start buying oil contracts with their freshly printed fiat and make it go right back to $150 a barrel if they wanted.  Or they could short it and make it go to a $1 a barrel if they wanted.  Econ 101 is a waste of time.

yogibear's picture

Gasoline everywhere.