WTI/RBOB Slide Despite Biggest Crude Draw Since 2016

Tyler Durden's picture

With oil surging back above $51 on hopes of a seasonal inventory drawdown, tonight's API data showed a bigger than expected draw in crude (biggest since 2016 and gasoline. The reaction was a kneejerk higher in WTI as RBOB slipped lower, but amid a big build at Cushing (+1.3mm), WTI also slipped.

 

API

  • Crude -1.8mm (-150k exp)
  • Cushing +1.3mm
  • Gasoline -2.6mm (-1.75mm exp)
  • Distillates -2mm

Biggest draw of 2017 for crude but Cushing saw a notable build...

 

And the reaction was a kneejerk higher in crude as RBOB dropped.. but then crude gave it all back...

“The market’s starting to realize that we’re going to be seeing total petroleum stock draws throughout the summer, so things are starting to look a little bit better from a fundamental standpoint in the U.S,” Michael Loewen, commodities strategist at Scotiabank in Toronto, says by phone

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troubledasset's picture

I've got some short positions that need to get ITM soon.

Deathrips's picture

WTI going at least to 52. If the fed wasnt backing the mark to market losses crude would be at 20$ a barrel. Fuck the fed..that cost me 40k to learn in wti.

IF it was a real market...that would have been a retirement bet.

Ohh well...gonna spin the wheel again. Bought 5 july 54 wti at 900 each.... :)

 

*only play in paper what you can afford to loose in a craps shoot.

 

Now the tough decision...eagles or maples to balance out the boat?

 

RIPS

brushhog's picture

When the summer driving season hits, we'll see oil to $60.

adr's picture

saying biggest draw since 2016 is like saying a drop of 100 points in the DOW is big. Compared to total inventories, these draws are minuscule.

OF COURSE THERE ARE GOING TO BE DRAWS!!!!! Refineries are switching over to summer blends.

The point is inventories are still above 2016 and make the old averages seem like Amazon stock in 1999 and 2008. Old bubbles don't even register.

The relentless fucking continues.

CHX13's picture

And even Thelma and Louise needed gas to drive over the cliff...

venturen's picture

The USA is going to be a net exporter with 5 years maybe with 3.... oil...oil everywhere not a drop to import

CHX13's picture

The USSA will not be a net exporter, it ain't now and never will be in the forseeable future; the costs of shale oil and fracking are just too high. The heck, the whole energy industry will soon be in a world of hurt.

blueberry100's picture

A Hoffman says WTI oil is headed to 20 .... Reason it's were it is Oil PPT..... Demand is dropping , the lie about supply,