'Take That OPEC' - WTI Slides As US Crude Production Jumps To Record High

Tyler Durden's picture

WTI/RBOB extended losses post-API data overnight, but DOE data sparked some algo chaos as a surprise crude build (+2.24mm vs -2.45mm exp) was offset by a bigger than expected gasoline draw (exactly opposite what API reported). In addition, US crude production jumped to a new all-time high - take that OPEC!

 

API

  • Crude -1.562mm (-2.45mm exp)
  • Cushing +812k
  • Gasoline +520k (-1.85mm exp)
  • Distilates-3.133mm

ADOEPI

  • Crude +2.24mm (-2.45mm exp)
  • Cushing +720k
  • Gasoline -3.31mm (-1.85mm exp)
  • Distilates -3.359mm

Last night's API data showed smaller crude draw and a surprise gasoline build, but DOE surprised with a big crude build and biugger gasoline draw (and a notable build in Cushing stocks)...

 

Production has normalized back at cycle highs as storm effects fade, surging to new cycle highs in the last week

 

And total US Crude output just hit a new record high...

 

The trend is not OPEC's friend...

 

WTI was back below $57 and RBOB below $1.80 ahead of the DOE data, sinking after last night's surprise gasoline build

“If the EIA data disappoints then it could take further steam off the market,” says Jan Edelmann, analyst at HSH Nordbank.

Comment viewing options

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

We're gonna need a bigger suite at the Ritz.

Juggernaut x2's picture

This should be good for a $.01 drop at the pump!

Two Theives and a Liar's picture

"I got your PetroDollar right here!"

Ron_Mexico's picture

Wait, I thought US oil production peaked back in the 70's.  You know the Hubbert peak theory and all that. What happened?

Gorgeous's picture

Not to mention playing around with graph axes scales.  Tylers favorite. "The trend is not OPEC's friend...".  C'mon Tyler.  Straighten up.

BTW, would be interested to know how much $$ Uncle Sam skims off of US oil production?

WallHoo's picture

America fuck yeah??

Relayer74's picture

Record high? pfft. Run that crude production chart back another decade and see what happens douchebag.

venturen's picture

just read 2018 forecast demand up 400k barrels a day increase...production 700k barrel a day increase.

In the last couple years...imports from  Saudi are down ONE MILLION BARRELS A DAY!

MuffDiver69's picture

Just wait until Keystone XL is pumping..We will be energy independet before the 2020 prediction I believe, but that will take a war in Middle East..hint hint..

Tugg McFancy's picture

Yeah take that Opec! LOL

I'm sure Opec is aware of the disparity of 300k pd between the weekly and monthy numbers and how this will be revised down.

abgary1's picture

Can tight oil maintain these prodcution levels and at what price are they profitable?