WTI Tumbles After Surprise Crude Inventory Build

Tyler Durden's picture

Following the ugliest day in a month for WTI (on OPEC production increase survey), bulls hopes rest on tonight's API data confirming the recent trend of inventory draws but that was not to be. Against expectations of a 3.1mm draw, API reported crude inventories built by 1.78mm barrels last week. The kneejerk reaction was clear - down hard.

 

API

  • Crude +1.78mm (-3.1mm exp)
  • Cushing +2.562mm (-700k exp)
  • Gasoline -4.827mm (-1mm exp)
  • Distillates -1.225mm

The recent trend in draws (for crude, gasoline, and distillates) was stymied last week with the biggest crude draw in 2 months, and a huge build at Cushing...

 

Following the Oil ETF's largest monthly withdrawal since 2009, WTI was hovering just above $49 as API printed but tumbled on the surprise build...

“This race to rebalance supply and demand--it’s a marathon and lot of people are entering it thinking it’s just a quick sprint,” Mark Watkins, a regional investment manager at U.S. Bank Wealth Management, which oversees $142 billion in assets, told Bloomberg. “But, this rebalancing is going to take a lot longer than a month, or six months or even a year.”

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c2nnib2l's picture

$ 42 

 

let's drink for that 

FreeShitter's picture

Would love 42, time to buy some GUSH again.

python_snake's picture

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BSHJ's picture

Nothing about Apple being UP over $7 , no $8 after-hours?  What happened?  Does the latest I-whatever wipe your butt for you or what?

Cloud9.5's picture

Up today, down tomorrow, up the next day, is this the bumpy plateau the peak oilers used to talk about?

silverer's picture

There's more surprises in crude oil inventory than an IRS audit.

PodissNM's picture

And next week crude will jump on a larger than expected "surprise" inventory draw down. The real question is what idiot is still surprised by this endless pump and dump scheme?

PhiBetaZappa's picture

Whether manipulated up or down it's always a 'surprise' in the new normal.

Farqued Up's picture

The same drunk Muzzie affirmative action barrel counter also uses the same Ouija Board to calculate (sic) the unemployment rate. Trust nothing an incompetent Gov that lies at every turn produces (sic) and publishes. 

shortonoil's picture

 

After almost 4 years of inventory build, and it is still a surprise. Must be Christmas in the oil patch?

wakeupsheeps's picture

It is every week that there is a surprise draw or a surprise buildup of crude or gasoline inventories.  Every single week it's a surprise.  What gives?  Any chance they could just pay attention to what goes out and what comes in?

skunzie's picture

My sentiments exactly.  Every week these idiots are "surprised".  I call bullshit!

 

Les Grossman's picture

HAHAHHAA!!   Yep, another bs headline issued by ZH's ABC media.  How about:  "After super bullish move last week, we are giving back some profit on the news."  Or the headline headline could be "watch out for vol ahead of tomorrow's EIA report" ... the globex/current downside move actually may be the buy signal ....with tight stop/support price already established.

TulsaTime's picture

Just looking for something to move the price one way and the other to game the price either way. If someone knew how that was going to work out each time, they could make a little change every week, sometimes more than once.  That sounds like as good a game as they have with gold and silver.  Cuz stable prices are just so boring and lack opportunity for for a fun game of roller coaster ride. 

NoWayJose's picture

It was a surprise to everyone except the guys that sold oil hard down today - funny how that works...

NoWayJose's picture

Actually the big gasoline draw looks more bullish to me. The concern has been on lack of demand - that looks like pretty hearty demand!

sinbad2's picture

What's with the price tumbled?

Oil has been between $45 and $55 for over a year, oil is now 50 bucks a barrel, get used to it.