WTI/RBOB Tumble After Unexpected Inventory Builds

Tyler Durden's picture

"There is still hope that inventories will draw and crude runs will remain high," noted one research director ahead of the API data as WTI rose for a 4th day (back above $44), the longest rally in over a month. With tropical storm Cindy likely impacting the data, API showed a surprise crude build (exp -2.25mm) and notable gasoline build which sent WTI/RBOB prices reeling.

 

API

  • Crude +851k (-2.25mm exp)
  • Cushing -678k
  • Gasoline +1.351mm (unch exp)
  • Distillates +678k (+350k exp)

Figures will be tricky to interpret because of impact from tropical storm Cindy, but taken as reported the biggest headline was the surprise build in crude and gasoline is most worrisome for the bulls...

Following last week's API/DOE data - which showed modest draws - the initial reaction was a kneejerk higher before tumbling. WTI was limping lower into tonight's print...

Of course, with Hedge funds near record bearish bets, it won't take much to send prices skyrocketing.

Fund managers now hold just two long positions for every one short position, which ranks among the most bearish positions since oil prices started to tumble in the middle of 2014...

 

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Crypto-World-Order's picture

Its all bullshit anyways, but trade the DOE not the API

Ajax-1's picture

I wonder why the inventory builds are always "Unexpected"?

Rainman's picture

...they will soon hatch the plausible rumor to keep gas prices jacked for the summer...wait for it.

NugginFuts's picture

It's "unexpected" and it happens every week. Makes total sense, right?

shizzledizzle's picture

The future ain't what it used to be.

Dukes's picture

With diminished demand I've been expecting these inventory builds.
Am I missing something?

Vlad the Inhaler's picture

Janet says the dimished demand is only transitory, and due to changes in wireless communications plans, or was it the weather, can't recall.

Mr. Ed's picture

Uh-oh... 13 demands from Qatar coming soon in headlines! ...no other way to get crude above 50 :=(

JackMeOff's picture

Everytime they continue to prop WTI, another report comes out showing the declining world demand for oil.  Comical really, just like the global Monetary policy of the Central Banks.

zzzz88's picture

LONDON (Reuters) - U.S. Federal Reserve Chair Janet Yellen said on Tuesday that she does not believe that there will be another financial crisis for at least as long as she lives, thanks largely to reforms of the banking system since the 2007-09 crash.

Master Electrician's picture

She looks like a walking, talking tumor. I give her a year at best.

decentralisedscrutinizer's picture

 

Why waste time on this alligator when the swamp’s most critical economic and political problems revolve around the hegemony of a global corporate cartel, which is headquartered in the US because this is where their dominant military force resides. The US Constitution is therefore the “kingpin” of an all-inclusive global financial empire. These fictitious entities now own the USA and command its military infrastructure by virtue of the Federal Reserve Corporation, regulatory capture, MSM propaganda, and congressional lobbying.

 

The Founders had to fight a bloody Revolutionary War to win our right to incorporate as a nation – the USA. But then, for whatever reason, our Founders granted the greediest businessmen among them unrestricted corporate charters with enough potential capital & power to compete with the individual states, smaller sovereign nations, and eventually to buy out the USA itself. The only way The People can regain our sovereignty as a constitutional republic now is to severely curtail the privileges of any corporation doing business here. To remain sovereign we have to stop granting corporate charters to just any “suit” that comes along without fulfilling a defined social value in return. The "Divine Right Of Kings” should not apply to fictitious entities just because they are “Too Big To Fail”. We can't afford to privatize our Treasury to transnational banks anymore. Government must be held responsible only to the electorate, not fictitious entities; and banks must be held responsible to the government if we are ever to restore sanity, much less prosperity, to the world.

 

It was a loophole in our Constitution that allowed corporate charters to be so easily obtained that a swamp of corruption inevitably flooded our entire economic system. It is a swamp that can't be drained at this point because the Constitution doesn’t provide a drain. This 28th amendment is intended to install that drain so Congress can pull the plug ASAP. As a matter of political practicality we must rely on the Article 5 option to do this, for which the electorate will need overwhelming consensus beforehand. Seriously; an Article 5 Constitutional Convention is rapidly becoming our only sensible option.

 

This is what I think it will take to save the world; and nobody gets hurt:

 

28th Amendment:

 

Corporations are not persons in any sense of the word and shall be granted only those rights and privileges that Congress deems necessary for the well-being of the People. Congress shall provide legislation defining the terms and conditions of corporate charters according to their purpose; which shall include, but are not limited to:

 

1, prohibitions against any corporation; a, owning another corporation; b, becoming economically indispensable or monopolistic; or c, otherwise distorting the general economy;

 

2, prohibitions against any form of interference in the affairs of; a, government, b, education, c, news media; or d, healthcare, and

 

3, provisions for; a, the auditing of standardized, current, and transparent account books; b, the establishment of state and municipal banking; and c, civil and criminal penalties to be suffered by corporate executives for violation of the terms of a corporate charter.

    

Charvo's picture

Let me get this straight here.  Consumers are up to their eyeballs in record debt (mortgage, auto, credit).  Consumers are the users of the end products for oil.  US oil companies are pumping like crazy in order to pay off debt.  I see no way oil goes up here unless the dollar just totally collapses.  That's not going to happen until 2018.

ThankUGartman's picture

Just remember Gartman called for a squeeze to 45.5 bbl ;)