WTI/RBOB Drop After Smaller-Than-Expected Gasoline Draw, Big Crude Production Rebound

Tyler Durden's picture

API data (smaller than expected build) and a weaker dollar have supported WTI overnight but as the DOE data hits, we are reminded that the impact from hurricane season lingers. WTI/RBOB prices kneejerked lower after DOE reported a bigger than expected crude build and a gasoline draw that was considerably smaller than API's reports. Crude production continues to rebound back near cycle highs.

 

API

  • Crude +1.43mm (+3.9mm exp)
  • Cushing +420k (+900k exp)
  • Gasoline -5.063mm (-2.13mm exp)
  • Distillates-6.13mm

DOE

  • Crude +4.59mm (+3.9mm exp)
  • Cushing +703k (+900k exp)
  • Gasoline -2.13mm (-2.13mm exp)
  • Distillates -5.693mm (-1.95mm exp) - biggest since Nov 2011

A big Distillates draw (most since Nov 2011) is being ignored for now as gasoline's draw was considerably less than API reported and crude's build more than expected...

Distillates stockpiles are now lower than the five-year average and totals are at the lowest level since July 2015.

As Bloomberg's Laura Blewitt notes, as expected, refinery runs rocketed up last week. Both crude inputs and gross oil inputs rose by the most since 2008 as Gulf Coast refiners got back online.

Production continues to rebound as more of Texas comes back online (despite the stagnation of oil rig counts)...

 

Heading into the DOE print, WTI was higher and RBOB lower since API (helped by a slightly weaker dollar) but both weakened on the DOE print kneejerk...

Comment viewing options

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

Don't worry the boys at the PPT will run it back up before the day is over.  Can't have any negative waves dragging the Dow down on FOMC day! 

Cloud9.5's picture

I don’t see it.  I burned a hundred gallons in the last week just running generators at mine and our parent’s houses.  I suspect a lot of people in Texas are doing the same thing.