WTI Lifts Towards $48 After Biggest Crude Inventory Draw Since September

Tyler Durden's picture

WTI slipped back to almost a $46 handle today before bouncing modestly into the close ahead of tonight's API report, with all bullish eyes hoping last week's surprise gasoline build was a 'blip'. API reported a much larger than expected crude draw (biggest since Sept 2016) and while WTI rallied on the print, it was a very modest move (that for now failed to achieve $48) as we suspect the fact that gasoline saw another surprise build weighed on sentiment.

 

API

  • Crude -9.2mm (-472k exp) - biggest draw since Sept 2016
  • Cushing +1.7mm (+700k exp)
  • Gasoline +301k (-450k exp) - second weekly build in a row
  • Distillates -2.1mm (-250k exp)

Last week's surprising gasoline inventory build was overwhelmed by a much larger than expected crude draw reported by API... and the same appears to have happened this week - big crude draw, modest gasoline build...

Additionally, the DOE confirmed it will sell 14 million barrels of crude from the SPR later this month.

 

WTI was hovering around $49 ahead of last week's API data and is hovering just above $47 into today's print... futures rose very modestly as the crude draw exuberance was offset by the gasoline build.

“As much as oil inventories have been coming down in the U.S., which is something that is seasonally normal, the fact that U.S. shale production is very resilient and is again confirmed by this EIA Drilling Productivity Report, that is something that is weighing on the market’s mind,” says Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas told Bloomberg.

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chomu's picture

Let the algos have fun with this print. Its going back to $40bb. Long DWT bitches!

Kenny Drebson's picture

more fake oil news to boost the fake stock market.

BandGap's picture

Seriously, if you draw from something it has to go somewhere. Where is the oil going? Gas consumption is way down (and storing gas is an issue) so where is this shit being parked?

 

adr's picture

That isn't end retail demand. Finished gasoline product hit a record, which means all the extra oil was refined into gas and other products adding to a record gasoline glut. 

The numbers regarding demand are as fake as temperature data on a global warming graph. 

It has been found to be a fact that the inventory drawdown hasn't happened at all, millions of barrels have disappeared on paper, but never went anywhere. 

Tugg McFancy's picture

Shshh don't mention consumption isn't falling. He's probably only relying on what's said around here, same with the stuff peddled on Chinese oil imports. We were told last year that any day it would going off a cliff, there hasn't been a month below 8mbpd of imports in 2017, it's 1mbpd higher than in 2016. Now watch for that because historically Aug/Sept/Oct are lower for Chinese imports. No doubt that part will be ignored when imports fall in the next few months.

tlnzz's picture

My guess is that they are exporting as much as they can to keep the price from going any lower. Just one more heavly minuplitaded and controlled market. 

tropicthunder's picture

All the guys I know who traded CL have gone balls deep into trading BTC/ETH and BTC/USD pairs now.

The level of volatility in the Cryptos just fucking dwarfs the crude oil ring now..

NoWayJose's picture

At some point you will wake up one morning and a headline is going to push oil up $10 a barrel.