WTI/RBOB Mixed After Biggest Crude Draw Since 2016, Production Hits 21-Month Highs

Tyler Durden's picture

Oil prices have roller-coastered since last night's API report of the biggest crude draw since September (hurricane-impacted), but kneejerked higher after DOE confirmed a big crude draw (though less than API), the largest since Dec 2016 and 8th weekly draw in a row. Distillates saw a surprise build, crude exports hit a record high, and production rose again to its highest since Aug 2015.

 

API

  • Crude -8.67mm (-3mm exp) - biggest since Sept 2016
  • Cushing -753k
  • Gasoline -1.726mm (-1.5mm exp)
  • Distillates +124k

DOE

  • Crude -6.43mm (-3mm exp)
  • Cushing -747k (-500k exp)
  • Gasoline -2.86mm (-1.5mm exp)
  • Distillates +394k (-700k exp)

8th weekly crude draw in a row and biggest since Dec 2016... surprise build in distillates

Bloomberg's Laura Blewitt notes that Today is June 1st -- an important day for Bakken crude. As of today, Energy Transfer's controversial Dakota Access Pipeline is now in service, providing a key outlet for oil to the U.S. Gulf Coast.

Lower 48 production continues to rise... from 8.815mm to 8.835mm - highest in 21 months...

Rystad Energy says U.S. crude production will exceed 10 million barrels a day before year-end, echoing sentiment from other analysts.  

Crude exports hit a new record high...

Gasoline demand at its highest since the peak last summer - seasonally ahead...

It's been a week since the OPEC extension deal and prices continue to hold lower... GLENCORE CEO SAYS OPEC HAS LOST MARKET CONTROL DUE TO SHALE - but prices were holding above API lows heading into the DOE print (ticking up into the data)= and bounced higher (though only marginally) on the data...

 

Close up...

 

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mily's picture

told ya again, gubbmint is so predictable, as soon as the oil price goes down we start getting ~record draws

101 years and counting's picture

record draws.....because imports have collasped and exports have gone parabolic.  there's no where left to put the shit.

Zepper's picture

Yup totally fucking fixed. As soon as it its their lower range, boom record draws, not to mention its the summer driving season and thats normal. 

 

And if oil hits $55 barrel.. omg we have such a glut everywhere. Recorde glut everywhere. 

 

Well just like this whole fucking stock market... the fucking fed... ITS ALL FUCKING FIXED! Fundamentals do not matter in the least.

 

Dont believe me, how many fucking hedge funds have gone under because they play the fundamentals and found that the fed and friends are now controlling the world. 

venturen's picture

any mention of record low imports of crude?

any mention of the record amounts stored everywhere? https://www.eia.gov/petroleum/storagecapacity/ look at the excel spreadsheet.

 

Dukes's picture

THank you for continuing to post this additional data and comments to give a full picture of what's going on with oil. It's appreciated.

Hohum's picture

Record low imports of crude?  In what universe?  According to EIA (FWIW), imports are up 6.6% year over year.  Inventories are up 1% year over year but high, of course.

Or construct your own reality, either way.  Finally, your link gives no context.

Dukes's picture

WHere are you getting those figures from?
I could be reading the EIA spreadsheet wrong but it looks to me that YoY comm crude stocks are up ~6.5%

adr's picture

SO record exports of crude and extremely low levels of crude imports are causing inventory draws, AND THIS IS BULLISH??????

Of course the demand to turn oil into gasoline is high, $1.61 with $48 oil. Especially for export, margins have never been higher.

Real end consumer demand for gasoline in the US, dead along with the economy.

$50 oil should mean retail gas at the pump with taxes for $1.50-$1.65 anywhere other than California and PA. We are being fucked out of almost $1 a gallon.

$2.45 at the station this morning. BEND OVER AND TAKE IT AMERICA!!!!!

Tugg McFancy's picture

You didn't seriously think it was about you and your needs did you? 

The Saudis need to do their IPO so they can still afford to defecate on Victoria Secret models in their spare time.

Sapere aude's picture

The next ruse being played now. U.S. Exports of oil....yeh right....so why import it to export it? Refineries exist throughout the world.

Drawdowns obviously but allied to false production figures and claimed exports that are as reliable as most other propaganda indicate the U.S. is in a bad way.

 

Instead of explaining the oil resource is going to be more and more of a problem, it persists in using all the tricks available to keep the price of oil down at any cost....which will blow up in its face as other exporters will refuse to sell oil to the U.S. at cut price rates or in dollars