Crude Algos Go Wild Again Despite 2nd Biggest Inventory Build In History, Production At New Cycle Highs

Tyler Durden's picture

It's like deja vu all over again. Despite the ugliest of ugly data, WTI is spiking...

 

Just like it did last week...

 

And the week before...

*   *   *

Following last night's shockingly massive crude build reported by API, DOE data confirmed the ugliness with a 13.83mm build (over 5 times larger than the expected 2.5mm build). Cushing also saw a major unexpected build but Gasoline and Distillates saw lower than expected builds (Gasoline draw). Production rose to a new cycle high.

API

  • Crude +14.27mm (+2.5mm exp)
  • Cushing +624k
  • Gasoline +2.903mm (+1.5mm exp)
  • Distillates +1.373mm

DOE

  • Crude +13.83mm (+2.5mm exp)
  • Cushing +1.143mm (-500k exp)
  • Gasoline -869k (+1.5mm exp)
  • Distillates +29k (+500k exp)

The 2nd biggest build in US history for crude stocks but Gasoline unexpectedly saw a drawdown...

At 9.4 million barrels a day, Bloomberg reports U.S. crude imports were the highest since September 2012.

Total crude inventories are near record highs once again...

US Crude Imports surged at an extraordinary 9.37mmbps pace last week, the highest since September 2014.

For some more context, Saxo's Ole Hanson shows the seasonal averages.

 

Notably, Goldman is gravely concerned at the plunge in gasoline demand, but gasoline demand did pick up modestly this week.

As rig counts continue to surge (and IEA forecasts major US shale output increases) so the general trend continues... This is the highest level fo crude production since April.

 

WTI and RBOB prices had plunged back to the lowest levels since November overnight after the API data. After the DOE data, RBOB rallied on the Gasoline draw but WTI is steady...

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Hammer823's picture

Oil bounced up after the terrible news.  Business as usual in our rigged market.

https://www.instagram.com/the_rigged_street_journal/?hl=en

NugginFuts's picture

It's like I have a lot full of cars, 5 TIMES more than I can sell at the current price. What do I do? Why, jack up the price of course!

Doña K's picture

They must know something. Like the straight of Hormuz getting shtupped.

watch out on Fridays

U4 eee aaa's picture

Good thing they cut back production.

Any news on how the parking lot of oil tankers is doing?

NugginFuts's picture

Soooooo bullish. Gonna go buy me a pile of matches so I can help them with their inventory problem.

BigFatUglyBubble's picture

They already have their matches ready to go, I'm sure.

BlueHorseShoeLovesDT's picture

That black smoke coming out of the Eccles building, nothing to see, move along.

Arnold's picture

When it turns white, there's a new Pope.

Toronto_notes's picture

they're just waiting for the sparks before set the whole thing on fire :)  inventory problem solved onto next one !!!

FreeShitter's picture

Should be under 30

FreeNewEnergy's picture

Or at least under $40. The prices are rigged, I tell ya, rigged.

Color me not surprised.

BlueHorseShoeLovesDT's picture

Gotta keep stawks up up up

 

Doha Doha Doha

 

They do this every time, it is about stawks!!!!

business as stusual's picture

This about trying to save TBTJ banks that have huge exposure to fracking companies. They keep the price up to keep the bonds from defaulting, just another circus show about spinning plates.

King Tut's picture

Got down to $26 last march, Dallas Fed calls a meeting of banks exposed to frack loan exposure and the price has been up, up and away since then

Kido's picture

Algos have no other buttons other than BUY BUY BUY

AlexCharting's picture

If you cant come-up with an explanation..... blame the algos. 

BlueHorseShoeLovesDT's picture

It is not about algos it is about people who manipulate algos

BlueHorseShoeLovesDT's picture

What is your explanation slick?

If you cant come-up with an explanation..... Don't post!

Arnold's picture

I don't have an explaination,

But I have a plan to change my name to Ole Hanson.

Lastline's picture

Robofuckers did it again

BlueHorseShoeLovesDT's picture

Algos react to inputs, the price of Oil is an input, it has nothing to do with oil supply or demand, it is about keeping stawks up.

Tape that to your screen if you trade!

If that does not work tatoo it on your hands!

 

Thank you President Trump.

BlueHorseShoeLovesDT's picture

It has nothing to do with oil, it is about rigging stawks.

 

I shorted Vix.

John_Law's picture

Why should I sell you my oil for your paper money? 

John Law Lives's picture

Why are you using that id and that avatar?  I have been a regular on ZH for 6+ years.

If you are going to use the id, at least have the courtesy to use a different avatar. 

Lizardking's picture

Should be or will be, think about that. Trade based on should be and you're killing money. You think these spikes are for nothing. These are strong buy signals pointing to a new trading range in oil. That being said this spike will be sold into and there will lower prices in the next month.

King Tut's picture

Oil got down to a fair price based on production vs consumption/shitty world economy- $26 last March- and then magically doubled back

ElixirMixer's picture

Maybe Saudi Arabia figured out it would be easier to just manipulate the price on the exchanges versus trying to actually coordinate a slowdown in production.

Dark Daze's picture

Its not the build, its whats coming next

King Tut's picture

The war drums are always beating- this is just price fuckery

John Beau's picture

Exactly.  There are a lot of dense/thick people on here who continually get the focus wrong. No wonder most people on here are not making money. 

Traderone's picture

4Xleverage, AliSONY, Babs.St.Louis, Billy G, Chi Juan, Dr.Carl, ErikE,

FemDayTrader, FRLEPU, Irvingm, jasony, John Beau, KanSass, KC Spike,

lostinhedge, MadhyaBharatx, Marilee, MexInvest, MikeM54, Miss Lou, Mon

T, P Christmas Carole, Penny Trader, Pinky and the Brain, PUNE,

RoBERTAZ, RonnieM, RudolPHDs, Sonya B59, Stan Your Man, StevieTexie,

Timming, Van G, Virginia Wooolf, wisetrader224, and xantippa

For the attention of Newbies or the Hard of Thinking: Those mentioned

above are failed traders who are now trying to make money by

encouraging you to subscribe to their Bullshit Signalling Service in

order to pay their bills. Simply put if they could trade they wouldn't

be here, they would be trading, DO NOT fall for this nonsense.

John Beau's picture

Algos?  Really?  More than that is involved. But they are helpful in quick trades.  But just because there seems to be a correlation after the fact does not make them predictive.

 

yes, I learned this from Shepwave. And they have the past charts to prove their correct calls. Algos are used ostensively to say what is going to happen in hte future but it never does happen that way.

 

Proof.  Here are just two of their calls in Gold and the ndx they made in December and made great money. 

 

https://www.facebook.com/166578775325/photos/a.10153488951800326.1073741827.166578775325/10154415124400326/?type=3&theater 

Traderone's picture

4Xleverage, AliSONY, Babs.St.Louis, Billy G, Chi Juan, Dr.Carl, ErikE,

FemDayTrader, FRLEPU, Irvingm, jasony, John Beau, KanSass, KC Spike,

lostinhedge, MadhyaBharatx, Marilee, MexInvest, MikeM54, Miss Lou, Mon

T, P Christmas Carole, Penny Trader, Pinky and the Brain, PUNE,

RoBERTAZ, RonnieM, RudolPHDs, Sonya B59, Stan Your Man, StevieTexie,

Timming, Van G, Virginia Wooolf, wisetrader224, and xantippa

For the attention of Newbies or the Hard of Thinking: Those mentioned

above are failed traders who are now trying to make money by

encouraging you to subscribe to their Bullshit Signalling Service in

order to pay their bills. Simply put if they could trade they wouldn't

be here, they would be trading, DO NOT fall for this nonsense.

BlueHorseShoeLovesDT's picture

ZH does not care, or possibly is complicit. I reported these guys several times.

Dr.Carl's picture

ZH knows who they are trust me. Any real trader knows them and uses them. The only bad part is that SW would probably not allow many people on here to sign up. That is what makes traderone's theory fall apart

 Everyone on here know that except him.

 

Traderone's picture

4Xleverage, AliSONY, Babs.St.Louis, Billy G, Chi Juan, Dr.Carl, ErikE,

FemDayTrader, FRLEPU, Irvingm, jasony, John Beau, KanSass, KC Spike,

lostinhedge, MadhyaBharatx, Marilee, MexInvest, MikeM54, Miss Lou, Mon

T, P Christmas Carole, Penny Trader, Pinky and the Brain, PUNE,

RoBERTAZ, RonnieM, RudolPHDs, Sonya B59, Stan Your Man, StevieTexie,

Timming, Van G, Virginia Wooolf, wisetrader224, and xantippa

For the attention of Newbies or the Hard of Thinking: Those mentioned

above are failed traders who are now trying to make money by

encouraging you to subscribe to their Bullshit Signalling Service in

order to pay their bills. Simply put if they could trade they wouldn't

be here, they would be trading, DO NOT fall for this nonsense.

Dr.Carl's picture

Plus traderone has failed to mention at least 100 others who also talk about ShepWave. 

What a good.

Traderone's picture

4Xleverage, AliSONY, Babs.St.Louis, Billy G, Chi Juan, Dr.Carl, ErikE,

FemDayTrader, FRLEPU, Irvingm, jasony, John Beau, KanSass, KC Spike,

lostinhedge, MadhyaBharatx, Marilee, MexInvest, MikeM54, Miss Lou, Mon

T, P Christmas Carole, Penny Trader, Pinky and the Brain, PUNE,

RoBERTAZ, RonnieM, RudolPHDs, Sonya B59, Stan Your Man, StevieTexie,

Timming, Van G, Virginia Wooolf, wisetrader224, and xantippa

For the attention of Newbies or the Hard of Thinking: Those mentioned

above are failed traders who are now trying to make money by

encouraging you to subscribe to their Bullshit Signalling Service in

order to pay their bills. Simply put if they could trade they wouldn't

be here, they would be trading, DO NOT fall for this nonsense.

Citizen_x's picture

 

Awesome ride up and reversal. 

Be nice to the the troll-bots, coach.  They keep everyone guessing wrong.

 

Traderone's picture

Hey CX, been a while.  Yeah the run up was great as they all are and now we are fading back to the mid point. Trading has been very kind to me lately and hope same for you, good luck.

NoWayJose's picture

Must be anticipating all the gasoline the libs will be using in their Molotov cocktails once they figure out that their crying and yelling are not working!

Traderone's picture

4Xleverage, AliSONY, Babs.St.Louis, Billy G, Chi Juan, Dr.Carl, ErikE,

FemDayTrader, FRLEPU, Irvingm, jasony, John Beau, KanSass, KC Spike,

lostinhedge, MadhyaBharatx, Marilee, MexInvest, MikeM54, Miss Lou, Mon

T, P Christmas Carole, Penny Trader, Pinky and the Brain, PUNE,

RoBERTAZ, RonnieM, RudolPHDs, Sonya B59, Stan Your Man, StevieTexie,

Timming, Van G, Virginia Wooolf, wisetrader224, and xantippa

For the attention of Newbies or the Hard of Thinking: Those mentioned

above are failed traders who are now trying to make money by

encouraging you to subscribe to their Bullshit Signalling Service in

order to pay their bills. Simply put if they could trade they wouldn't

be here, they would be trading, DO NOT fall for this nonsense.

south40_dreams's picture

Just a handful of rogue countries could cause a melt down. Invest wisely or not at all

cashtoash's picture

Manipulation before Saudi Aramco IPO, once people have bought shares, down we go to $20/barrel.  Buy DNO

DarkPurpleHaze's picture

It's symptomatic of the liklihood of war increasing in the middle east with Trump at the helm and with Iran now squarely in his cross-hairs.

We're one incident away over there (Hormuz Strait) from a long term supply disruption.