WTI Pops After Huge Crude Inventory Drawdown

Tyler Durden's picture

WTI prices have roller-coastered (generally lower) since last week's inventory(lower)/production(higher) data back to unchanged but as API printed a massive 8.133mm crude drawdown (vs 2.45mm exp), the biggest since Sept 2016 if DOE confirms, WTI prices quickly jumped higher. Gasoline also saw a bigger than expected draw while Distillates built.



  • Crude -8.133mm (-2.45mm exp) - biggest draw since Sept 2016
  • Cushing -2.028mm - biggest draw since Feb 2014
  • Gasoline -801k (-534k exp)
  • Distillates+2.079mm

Big drawdowns across the board last week from API and DOE added to in crude and gasoline this week...


A lot of hope today as EIA cut its 2018 crude production forecast (modestly) - “This pull-back in production is kind of wake-up call to people who thought that shale was going to be viable no matter what OPEC did,” Phil Flynn, senior market analyst at Price Futures Group in Chicago, says by phone, adding "If output doesn’t rise as much as previously anticipated, “then it’s time for the bears to start questioning their religion again."

Notice that WTI was trading at the same level as it was when last week's API data hit before the print...once the data hit, WTI was bid above $45.50...Deja vu all over again

However, what Flynn and the algos probably missed was EIA's cut on demand expectations and price outlooks.

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Rainman's picture

 ... so the muppets will get it good and hard in the gazz for the final 2 months of driving season... shocking.

peopledontwanttruth's picture

By the end of the day or week it will say huge unexpected build up. WTI lower.

It's all manipulation at this point.

Juggernaut x2's picture

By "at this point" you mean since 2008, right?

peopledontwanttruth's picture

Jugger and Rainman I'm not sure of the date but it could be either of the ones you picked but it's all manipulated. Don't know all the reasons but just taking a wild guess thinking it's got to be either derivatives or balancing spreadsheets behind the scenes as they're trying to patch a sinking ship with duct tape. The last several months to years this subject on ZH is mind numbing on up, then down, no up then up some more by a few hours later another unexpected draw/build. Nothing as far as the world's biggest commodity moves that much that they couldn't see coming.


Something smells like sh&t

Yen Cross's picture

 Glad I covered yesterday.  When Ole Yeller is bloviating, I stay flat, and square up my trades.

  I'll bet Gartman has cozied up to a nice toilet bowl full of pruno, and a pipe/bong full of ragweed right about now.

Arnold's picture

Short, long, or some derivative trade.

Dennis, bubula, I am here to facilitate things.

Hans Gruber: "And when Alexander saw the breadth of his domain, he wept, for there were no more worlds to conquer." Benefits of a classical education.


Arnold's picture

Big Johnson: [flying in the chopper to the roof] Just like fuckin' Saigon, hey, Slick?

Little Johnson: [smiling] I was in junior high, dickhead.

Dwayne T. Robinson: We're gonna need some more FBI guys, I guess.

Holly Gennero McClane: After all your posturing, all your little speeches, you're nothing but a common thief.

Hans Gruber: I am an exceptional thief, Mrs. McClane. And since I'm moving up to kidnapping, you should be more polite.

Arnold's picture

Dennis Gartman: [Dennis is fighting Karl] You should have heard your brother squeal when I broke his fucking neck.

Arnold's picture

Dwayne T. Robinson: We don't know shit, Powell. If there's hostages, how come nobody's come to us with ransom demands, huh? If there's terrorists in there, where's their list of demands? All we know is that somebody shot your car up. It's probably the same silly son of a bitch you've been talking to on that radio.

Sergeant Al Powell: Excuse me, sir! But what about the body that fell out the window?

Dwayne T. Robinson: Well, who knows? Probably some stockbroker, got depressed.

Yen Cross's picture

 Lets keep it "Simple Jack"...  Mike Tyson said it best--- > everyone has a plan until they get punched in the face<

Arnold's picture

Sorry, hadda set it up a bit.
Please use your favorite banking participant as a substitute.

Yen Cross's picture

 I wouldn't jab ya, if I didn't like ya.

Arnold's picture

Juicing the Algores a bit.

lester1's picture

Are the Federal Reserves PPT still dumping the oil they buy back into the ocean?

jmack's picture

Gartman, calling the ebbs and flows of the market, like only he can.   If tomorrow's report gets this thing to close above 47, I am going to laugh my ass off.

arrowrod's picture

I, along with every other poster, doesn't believe a word...

Ain't the FTC supposed to?

venturen's picture

oil sloshing around the world....where are these vast amounts of oil going....Oh private tanks in Canada...what a joke

adr's picture

So the algos bought oil back to the point it was last week. 

Oil is down $10 from the level that gave us $2.45 gas, but gas has only fallen $.10.

Of course $40 oil should be $1.45 gas, but don't let logic and historical prices get in the way of manic manipulation. 

Arnold's picture

It is.
Your federal and state governance at work.

Last of the Middle Class's picture

FANGS fired up the gulfstreams for a vacation.

Tugg McFancy's picture

It was reported 6-8 weeks ago OPEC would be diverting shipments away from the US to get some movement in US stocks.

It would be first noticed in July. If true and it's happening there no point being a bear for a while (no matter where they hide it) because no one ever pays attention to anything but US inventory.


richatstructure's picture

"Huge Crude Inventory Drawdown." This resulted from G20 transportation costs.