WTI/RBOB Tumble After Surprise Inventory Build Sends Crude Glut Back To Record High

Tyler Durden's picture

Following last night's API-reported unexpected draw in crude, the energy complex was on a tear heading into the DOE data... but that ended quickly with a surprise build in crude and smaller than expeccted draws in gasoline and distillates. WTI/RBOB are notably lower on the data. Another rise in production further stressed markets.

API

  • Crude -1.8mm (-150k exp) - biggest draw since 2016
  • Cushing +1.3mm
  • Gasoline -2.6mm (-1.75mm exp)
  • Distillates -2mm

DOE

  • Crude +1.566mm (-150k exp)
  • Cushing +1.413mm
  • Gasoline  -618k (-1.975mm exp)
  • Distillates -536k

Product stocks have been falling consistently since the beginning of February, but the surprise crude build shocked markets after last night's API print

Pushing total crude stocks to a new record high.

Crude stocks are now +35 million bbl (+7%) above 2016 and +193 million bbl (+58%) above 10-yr average, according to Reuters.

 

The glut increased despite a slow down in imports to 7.85 million b/d last week from 8.22 million b/d prior week

Cushing, Oklahoma, the pricing point for Nymex crude futures, saw a big build, putting stockpiles there over 69 million barrels for the first time.

Production rose once again.

 

WTI and RBOB prices were soaring into the print

Price increase is “partly the API and partly some supply disruptions as well,” says Hamza Khan, head of commodities strategy at ING. “You have to question how much of this rally is overdone, some of it could be short covering and the fundamentals haven’t changed that much”

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Seasmoke's picture

The daily oil contradictory statements are beyond what any one can comprehend!!!!!

Joe Sichs Pach's picture

API is as reliable as an OPEC quota

spastic_colon's picture

apparently this info is not enough to derail the rally........only the rally in energy....which must not be a sector in any indexes / s

silverer's picture

It's really just a rally to try to service loan debt. But it's so screwed up, because it's like the more hours you work, the more they lower your pay. Banks. The root of all evil.

GreatUncle's picture

Easier to consider it you have all this debt and it requires servcing.

We are past the point now where the total revenue does not even cover the interest on the debt even at near zero rates.

The real economy is too small to support this level of debt and getting smaller as the drive for savings becomes ever more desperate.

Take a TV, to make it cheaper you do what?

Note you cannot remove the screen to make it cheaper but you can cut the labour cost altogether if you use robotics!

Replace TV with any goods you may purchase.

clade7's picture

I like Crude Glut and I cannot lie!  You other brothers cant deny! 

When a guy pulls in with a booger eating grin and an empty tank in their face, I get Sprung!

 

I shout "Fill Her Up" and gimme a free wash to boot!  Big Glut!

silverer's picture

Another SURPRISE! C'mon. We have to stop calling these unanticipated changes in inventory "surprises". They're not really surprises, because it happens every few days. This has become standard behavior for oil markets. Let's try "up blips" and "down blips", because having a "surprise" this often is killing the effectiveness of the word itself.

btn's picture

I was thinking the exact same thing.  Saudi Arabia is trying to keep oil up becuase of Aramco deal, but non-OPEC producers (US, RUssia, etc.) are making it hard.

order66's picture

69 million barrels at Cushing is not even 5 days of U.S. usage.

Joe Sichs Pach's picture

Sure, but 5 normal, continuous days of usage with ZERO production or imports? Think of what it would take to create that environment. How would the US and world react?
Plus, that's just Cushing.

whatamaroon's picture

Doomberg reported last night that China imported 8MMbbl of light sweet crude from the US last month, the most in 50 years. #WINNING #MAGA

adr's picture

And last year US oil exports were still illegal. With the ability to export millions of barrels we are still seeing crude stockpiles rise.

Somehow oil is still above $20.

adr's picture

RBOB should be $.70 lower than it is right now.

Is anyone going to stop the insanity?

Is $1 going to become the new price difference between regular an premium? I am now seeing a $.70 difference at some gas stations.

Truth Eater's picture

When the storage tanks are full and no place else to put it, we speculate over "draw downs" and gluts with cute words like tumble and surge.  All we really get for excuses is fat fingers and splurge.

World powers are fully stored up for war.

Ricki13th's picture

All this oil being produced but oil still $50 a barrel just another bubble by the so called "Markets".

GreatUncle's picture

The value is just some nominal figure put up by the markets and supported through fraudulent paper.

It could be, thereagain probably is far ... far ... less if nobody is buying.

That what it seems to be to me.

This pretence of a fully recovered economy everybody was buying into.

Non-Corporate Entity's picture

I already ordered my heating oil...They had me anticipating higher and they go lower.

Well played, you schizo bastards!!!

sunny's picture

"Tumble?"  Oil down 0.22%.  Possibly more of an "ooze".  A thought.

YHWH is greater's picture

Surpise ?

Made up BS.

tbone10's picture

Wait till War kicks in which will be soon let's see where the prices go

GreatUncle's picture

Man that's so fucking ugly, it is surreal.

Today is over double the 2000-2004 total crude inventory.

Price I can understand thats Keynes and the forced banker inflation but not volume.

Does this mean to get the total value for their accounts off the total barrels of oil they just double the stored quantity?

 

Farqued Up's picture

Oil as the major source of energy and power may be on its last leg, anyway, if there is any truth in the Antarctica story. There are additional energy theories floating out there too.

goldenbuddha454's picture

Oil build certain and you would think with a recovery it would be going the other way, no?  https://www.eia.gov/dnav/pet/pet_sum_sndw_dcus_YCUOK_w.htm