WTI/RBOB Sink After Big Crude Build, Production Jump Offsets Greatest Gasoline Inventory Draw In History

Tyler Durden's picture

WTI and RBOB prices are higher this morning following API's reported the biggest gasoline draw in history (compared to EIA data). Of course, disruptions (Florida demand and Texas supply) remain dominant but DOE reports a massive 8.4mm draw in Gasoline inventories - the biggest draw ever. The reaction in prices is anti-climactic as production rebounded and crude built dramatically to offset the exuberance.

Bloomberg's Javier Blas reminds readers that the report covers the period from 7:01 am on Friday, Sept. 1 to 7:00 am on Friday, Sept. 8. So a lot of disruption from Harvey (particularly from Sept. 1, 2, and 3) will still impact everything from refining intake to crude production and U.S. imports and exports.

API

  • Crude +6.181mm (+4.82mm exp)
  • Cushing +1.32mm (+1.6mm exp)
  • Gasoline -7.896mm (-1.5mm exp) - biggest draw ever
  • Distillates-1.805mm

DOE

  • Crude +5.888mm (+4.82mm exp) - biggest build in 6 mos
  • Cushing +1.023mm (+1.6mm exp- biggest build in 6 mos
  • Gasoline -8.428mm (-1.5mm exp) - biggest draw ever
  • Distillates -3.215mm - biggest draw in 6 mos

Bloomberg Intelligence energy analyst Vince Piazza notes that the impact from hurricane season will keep crude demand subdued, with roughly two million barrels of daily refining capacity off-line. Depressed gasoline consumption should persist temporarily on lower transportation use and suppressed refining utilization.

Gasoline inventories confirmed API's data and saw the biggest draw in history as Crude and Cushing saw major builds...

The bearish data point is that total U.S. petroleum inventories (that's crude, refined products, propane and the volatile "other oils" category) have built for the second consecutive week.

Total stocks up 1.7 million barrels, driven by big builds in crude, propane and other oils.

US Distillate exports fell to their lowest levels since 2010.

The massive collapse in US crude production last week - with most of Texas offline - has recovered somewhat with a 572k surge in production this week. However, it is clear that levels of production are well off pre-Harevy levels...

 

“We’ve had some supportive news from all three major oil industry bodies, OPEC seeing robust demand, IEA seeing the same and the EIA downgrading their outlook for U.S. production,” says Ole Hansen, head of commodity strategy at Saxo Bank.

“These are all things that point to a market that’s been in quite a better place than we’ve been in for a long time," and prices had gained following API's data, heading into the DOE data.

 

But it appears the biggest draw in history was not enough to hold RBOB prices up...

 

Comment viewing options

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

WTI algos are now saying "WTF"!

shizzledizzle's picture

All comodities must die so that the dollar can live. 

CHoward's picture

"Gasoline - biggest draw ever".

 

Everyone must just be driving around in circles 24/7 non-stop I guess.

buzzsaw99's picture

1) this was a one time draw.  people are broke and have been running on fumes.  they finally decided to use the last $50 on the cc to fill up before the storms hit.

2) winter blends can be sold (starting next week?).

Dickguzinya's picture
WTI/RBOB Sink After Big Crude Build, Production Jump Offsets Greatest Gasoline Inventory Draw In History

 

WTI is up this morning, even after the article hit ZH.  Over 48.90.  Great reporting ZH.

RockRiver's picture

WTI/RBOB Sink After Big Crude Build, Production Jump Offsets Greatest Gasoline Inventory Draw In History

 

WTI is up this morning, even after the article hit ZH.  Over 48.90.  Great reporting ZH.

Fade the stats......ZH does not understand that.

1777's picture

It's just  LIPSTICK ON A PIG now......

Enjoy!

Sooooooooeeeeee........

NoWayJose's picture

So we get a production drop, we close ports for inbound oil - and we get an inventory build??? Does anyone even look at these numbers and apply logic???

And I am sorry - but fuel demand in a flooded area actually increases as relief teams arrive, cleanup and debris removal happens, lots of hauling, delivery of new building material, and people have to drive further to get basic staples and groceries.

RealistDuJour's picture

If only there was some form of infrastructure that we could utilize to move oil into depot storage across land from areas not affected by the hurricanes that didn't involve marine access.  If only.

Dave5150's picture

With refineries offline to process the crude, yeah, there was a guaranteed crude inventory build this week.  Crude production still continues, even if there aren't refineries to process it all.

1777's picture

I'm in Winston-Salem and the nearly brand new Lonestar Steakhouse is outta bidness....

Even a retarded monkey knows when it's being make fun of.....

;-)

 

pocomotion's picture

Broke back mountain Venezuela style. You must accept our imf loans bitch... as soon as Venezuela capitulates oil be KING again and plastic future.

Md4's picture

"Gasoline inventories confirmed API's data and saw the biggest draw in history as Crude and Cushing saw major builds..."

Once refining capacity comes back, I would imagine pump prices will decline sharply ($2.00 a gallon, or even a little less). Crude generation wasn't impacted much, but refining was. Getting rid of swollen crude to get back to balance will, hopefully, be good for consumers.

For now, I only buy a little to top it off...

Sapere aude's picture

HA HA. You could not make this stuff up...oh wait they are making this stuff up.

 

Only yesterday the draw was announced as the biggest for some years

 

Only yesterday I posted elsewhere an article from the IEA surprised that demand had exceeded their expectations and that another 1,600,000bbls of oil per day will be used.

Fast comes the day when we cannot produce any more at all and the powers that be no this, hence these stupid figures from the EIA and others that they themselves admit are nothing more than guesstimates and are always changed after the event, and after they have delivered their propaganda weapon and its done its job.

The only problem now is people are at last realising its complete and utter tosh about a glut, absolutely.

The logic and strategy is so bad it defies belief. Pretend there is no problem, pretend there is a glut, hit Russia's income because they want to trade in something other than dollars, the same as Libya was hit, the same as Iraq was hit, Iran was hit....is it all a coincidence that these were moving away from the petrodollar before changing from friends to public enemies, or the WMD's that just never existed.

We are on the verge of world oil shortages, get used to it and stop this stupid game of pretence, because this wil make matters worse. Come out with it, and then we can perhaps address this shortage, instead of surreptitiously pushing the climate change, devil incarnate diesel engines, fuel gluts whilst panick to get Tesla's even more subsidised, Solar, Wind, battery storage, all more inefficient but part of the game of trying to sneak in enough renewables to make up for the PENDING SHORTAGE that everyone in the oil industry knows, and where Saudi's cables to the US confirmed.

THE EMPEROR HAS BEEN FOUND TO NOT BE WEARING ANY NEW CLOTHES, and the logic of pretending how wonderful these clothes are, based on thin air and propaganda is exposed.

This has been played by the US and the West who have been filling as much storage as they can in this ridiculous strategy, and as shale fails it will become apparent that the world has been conned. This wil not end well