WTI/RBOB Kneejerk Higher After Unexpected Inventory Drawdown

Tyler Durden's picture

After the Saudis spoiled the energy party early on (and tried to talk it back for the rest of the day), API reported an unexpected 531k Crude draw (the first drawdown in 2017). While Cushing saw a notable build (over 2mm - biggest since Dec 2016), Gasoline and Distillates had big draws and that sent WTI and RBOB prices higher.

 

API

  • Crude -531k (+3.13mm exp)
  • Cushing +2.06mm
  • Gasoline -3.875mm (-2mm exp)
  • Distillates -4.07mm

The unexpected crude drawdown ends the 9 week streak of builds, but Cushing's build was the largest in over 3 months. This is the 4th weekly draw in Gasoline (seasonally appropriate)

 

The overnight drop in WTI leaked back higher after the Saudis tried to explain why/how they cheated (note, RBOB managed to get green by the close). Notice the small run higher in WTI/RBOB before the data was released, then jumped as the data hit... RBOB tagged 1.60 stops and WTI 48.50...

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cn13's picture

I appreciate you reporting this news but the API inventory report is voluntary and to me completely worthless.

The DOE report tomorrow morning is required and the only thing that matters.

Kefeer's picture

The only thing that matters is where the insiders place their bets and the narrative will be reported that is best for them; the numbers are completely made up.  Ever notice how real important news that will affect a stock price is almost always announced over a weekend or over night.

happyfrog's picture

Keep buying until Gartman goes long again.

Kefeer's picture

They just make this crap up as they go.  Fake numbers from fake government workers.

spicedune's picture

drawdown is kind of surpricing given demand pricing pressure www.inflation.co

Jäger's picture

$48 is the new line in the sand- step right up and place your bets.

Joe Sichs Pach's picture

Never let a good farce go to waste

RealistDuJour's picture

Like everyone here predicted, last week was the one time SPR effect.  Today and tomorrow will just confirm this fact and we all can make some moneys off the overreaction of oil sell-off!

masons's picture

wish Ackmangoes long oil so i can short it