WTI Plunges To $44 Handle After Inventory & Demand Disappointment

Tyler Durden's picture

After tumbling last night following API's surprise builds, WTI/RBOB levitated on a weak dollar into the DOE print but initialy kneejerked lower on the data which showed a smaller than expected crude draw and confirmed another significant gasoline build. After a small drop last week, crude production rose once again to cycle highs.

API

  • Crude +2.75mm (-2.45mm exp)
  • Cushing -833k
  • Gasoline +1.794mm (-1.15mm exp)
  • Distillates -1.451mm

DOE

  • Crude -1.66mm (-2.45mm exp)
  • Cushing -1.156mm (-1.4mm exp)
  • Gasoline +2.096mm (-1.15mm exp)
  • Distillates +328k (+550k exp)

Last night's surprise build in crude was not confirmed (but the DOE data showed a smaller than expected draw). Cushing stockpiles fall to the lowest level of the year, dropping more than a million barrels for a second week. The total is now 62.2 million barrels, plenty of room in the tanks there. However, Gasoline inventories rose once again...

 

After a modest drop in production in the Lower 48 last week, US crude production rose once again this week to its cycle highs...

 

As Bloomberg's Laura Blewitt notes, Gasoline demand dropped for the second week in a row after hitting a record-high 9.822 million barrels a day, according to the one-week preliminary data. With another build in stockpiles reported, gasoline futures are down to the lowest levels since November.

 

WTI/RBOB prices rallied into the print this morning on the back of a dramatically weaker dollar but once the data printed, selling began...

 

WTI just hit a $44 handle - the lowest since early May...

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
happyfrog's picture

It's going to be an ugly winter for crude.

Dukes's picture

These "unexpected" and "shocking" moves have been happening consistently enough now that we shouldn't be shocked and should begin to expect them.  

tmosley's picture

B.b..but muh peak oil...

Muh everyone but me dead cause I'm so smart...

Muh teenage sex slaves bought for a half gallon a diesel...

bshirley1968's picture

Yo debt Masta be calling.  Better get yo ass back in them fields and get to workin.

They can't stop.....or slow down.....for long.

Government needs you to pay taxes's picture

I aint no field nigger.  I beeda boss nigger.  Dass wut dis EBT card say.

TroyAndAbed's picture

Too many stakeholders that want higher prices, and the shale guys won't be able to survive at $45 WTI despite the talk track that they can break even at that price. These prices can't last. I'm getting long.

Peacefulwarrior's picture

War will help this long position

TheSilentMajority's picture

API data needs to be discontinued.

Redundant and/or usually bigly wrong at best.

BitchesBetterRecognize's picture

cryptos are getting hit hard yet again.... 

Crypto-World-Order's picture

Jew banker out of germany trying to put pressure on them.

gregga777's picture

Well, 102 MILLION unemployed working age Americans don't:

  • buy much gasoline or diesel fuel;
  • buy much at the local mall or department store;
  • buy much at their local restaurants;
  • have a big fat paycheck to finance their consumption;
  • care for either the Demo-Marxist or Repussican Party political parasites;

And the 43 MILLION Americans dependent on USDA SNAP EBT cards can only buy food and drink items with their generous benefits.  So, they aren't buying a lot of fuel or consumer goods down at the local mall.

 

But, never fear the Goldman Sachs Feral Reserve System and the US Bureau of LYING Statistics says that the unemployment rate is "only" 4.3%.

 

 

NEOSERF's picture

Time for a revision to the metrics to take into account 100M not working, 43M SNAP cards, Medicaid and retirees so that it appears things are moving forward.  Can't move to fast or gets hard to justify the 0% COLA increases on Social Security though.

shortonoil's picture

"B.b..but muh peak oil..."

This has absolutely nothing to do will PO; which is an over simplified explanation of an extraction curve. It is the direct result of the depletion taking place in the petroleum production system, and it will continue until that system stops.

http://www.thehillsgroup.org/

GlassHouse101's picture

The Wassabii's will not be happy

totenkopf88's picture

I like their peas- very spicy

pebblewriter's picture

It's a moment of truth for WTI.  If it can't hold 44, it would trigger a bearish H&S Pattern trageting 31.55 -- a 28% plunge. 

https://twitter.com/pebblewriter/status/875020606785282049

sinbad2's picture

Too much oil, too little consumption.

If the biggest oil producer was taken out(USA), the global oil price and the global economy would recover.