WTI/RBOB Tumble As US Crude Inventories Hit New Record High, Production Surges

Tyler Durden's picture

After API's surprise gasoline build (sending RBOB prices lower), DOE reported a draw (though smaller than expected) but crude saw the 8th weekly build in a row - pushing US crude inventories to a new record high. Production continued to surge (above 9mm) to new cycle highs.

 

API

  • Crude +2.502mm (+3mm exp)
  • Cushing +544k
  • Gasoline +1.84mm (-1.5mm exp)
  • Distillates -3.73mm

DOE

  • Crude +1.501mm (+2.2mm whisper)
  • Cushing +495k (-400k whisper)
  • Gasoline -546k (-1mm whisper)
  • Distillates -925k (-2.1mm whisper)

The 8th weekly build in a row for crude but Gasoline's draw is the most notable (relative to API)...

 

This is a new record high for US crude inventories...

As Bloomberg's Javier Blas notes, U.S. crude inventories have increased eight consecutive weeks. I think we can conservatively say the rebalancing isn't happening -- or isn't happening as the bulls expected.

US Crude production continues to rise in trend with the lagged rig count...

 

WTI prices were higher and RBOB lower post-API heading into the DOE data - RBOB erased the decline then faded...

 

Remember what happens about 15 minutes after the data - the algo panic bid.

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NugginFuts's picture

Calling it now: it will all end in the Green today. Guaranteed.

stocker84's picture

Holy cow it tumbled hard...down 0.20 at the time the article came out. Yet still not lower than yesterday's lows.

Wishful thinking, writer.

The word TUMBLE: (of something abstract) fall rapidly in amount or value.

"property prices tumbled"

synonyms: plummet, plunge, fall, dive, nosedive, drop, slump, slide, decrease, decline, crash

"oil prices tumbled"

 

HEADLINE SHOULD READ:

CHART PORN COMPOUNDED BY WISHFUL THINKING AND I GET MY POINT ACROSS...AND MY POINT BEING "CLICK ME, OH, OH, CLICK ME!! CLICK HERE, CLICK!!"

CNBC, MUCH?

Truth Eater's picture

Yeah...  "TUMBLE" is not even close to a good verb for this. If the price dropped from $54 to $47, I could begin to think of a "tumble".  We really have to stop playing this fake news game.  ZeroHedge should never be one of the false sources.  Let's keep the standards higher.

Houses Depreciate's picture

Regardless, the only way out of this mess is falling prices to dramatically lower and more affordable levels.

Youri Carma's picture

Yep, and it already has begun. Always around $53.80.

skbull44's picture

But that Gartmann long recommendation ??

Houses Depreciate's picture

This is a very positive development. Nothing accelerates the economy and creates jobs like falling prices to dramatically lower and more affordable levels.

Jäger's picture

Gas jumped 40 cents at the pump here yesterday afternoon  to $2.50

Jäger's picture

The stations around here jack it up quickly and then bleed a few cents off a day for a few weeks and then repeat the cycle.

Houses Depreciate's picture

Indeed. Retail fuel prices have a long way to fall.

BandGap's picture

production up, inventories at record capacities and the price goes up.

Fuck this. So tired of this bizarro world.

post turtle saver's picture

good lord $2.50 / gallon? we're paying $1.98 here in the People's Republic of Travis County... hell, diesel is $2.25...

A. Boaty's picture

Fundamentals point to a much lower price/bbl. Anything in the $30 - 50 range looks like market manipulation.

Squid Viscous's picture

and... another vix smash at 10:45

just for shits and giggles

yogibear's picture

Onward to DOW 36,000 boyz. Everything is super awesome! Normal average PEs should be 100. Still plenty of room to go up.

Dr. Engali's picture

Damn it Trump! Oh wait..., lower prices area good thing. Praise be to Obama and his legacy!

daveO's picture

Just throw in the obligatory refinery fire.

Joe Sichs Pach's picture

If there's API, "whisper" then the DOE numbers that are apparently irrefutable, then why the fuck aren't just the DOE numbers released?

Everybody's got to get in on their faux headline whipsaw action.

Hohum's picture

No rebalancing as long as the imports keep rolling in:

 

http://ir.eia.gov/wpsr/wpsrsummary.pdf

Zepper's picture

There is no greater commodity in the history of this fucking crap world that is more fixed then Oil. 

 

They can have 52 consecutive builds, 5 trillion barrels of oil floating(LITERALLY) around and the commodity will go up in value. THIS IS WHAT PEOPLE ARE FUCKING SICK OFF! FIXED FUCKING MARKETS! COMMODITIES! JOBS! POLITICS! ITS ALL FUCKING FIXED!

 

You have a bunch of fucking disgusting shit in ALL of the middle east shaking hands with Russia to fix the market not to mention money funneled in from newly printed money. 

To drain the swamp in the oil industry you would have to kill everyone and their families 5x removed. Absolutely disgusting industry based on BULLSHIT!

Hohum's picture

You may not want prices to fall much if that means production doesn't come online.  For all the inventory, a world that consumers 95+ million barrels per day stii suggests it's a just in time process.

Houses Depreciate's picture

"You may not want prices to fall"

 

LOL. Want in one hand and shit in the other and see which fills up faster but everyone wants falling prices.

Hohum's picture

Drillers don't.  Oil industry will die with $25/barrel for an extended period. Feel free to disagree and but look at the free cash flow of these companies before you do.

Houses Depreciate's picture

Drilling cost is a small fraction of overall production cost of $6/bbl. Drillers have zero to do with it.

MrBoompi's picture

I'll tell you why the rebalancing hasn't happened.  The "precipitous drop" in crude price on the chart is in reality only a drop of 0.5%, hardly enough to affect supply and demand.  But the big investors live and die by the tiniest of price movements, and we're supposed to believe this is the real oil market.  

Davidduke2000's picture

This resignations indicate something terrible is about to happen and these guys are running for the hills.

DbePrepared's picture

1. seniors drive less

2. unemployed drive less

3. poor drive less

 

bankbob's picture

Natural Gas has replaced fuel Oil in huge amounts.  NYC mandated that #2, #3 and #4 fuel oil had to be replaced with Natural Gas.

That is permanent demand destruction.

wow thats crazy's picture

Yellen better print more money so we can spend it!!! How hasn't fiat money not crashed yet???

Cloud9.5's picture

I posted this chart several years ago and guys with a book to sell explained it away.  The trend is obvious.  http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=A103600001&f=M

 

Sapere aude's picture

ZH doing its best to propagate fake news again.

Only the U.S. can create its own inventory by buying more oil then squealing about increased inventory to get the price down.

If it wasn't so serious everyone would laugh.

The only problem to it is it will push us from the petrodollar as more and more countries refuse to sell oil to the U.S.

 

Increased production....A COMPLETE IMPOSSIBILITY IN THE U.S. as I have mentioned many times before accompanied by FACTS something that seem in short supply here.

 

Have you noticed now how even the world and even U.S. companies do not believe the hype, as oil will not go down to the levels the U.S. want to punish others. The others are busily buying up gold using dollars, buying up future oil production using dollars, buying up agriculture using dollars....Anything to get rid of dollars.