Following last night's surprising 2.3mm barrel inventory build, reported by API, [3] DOE reports a massive 4.8mm build against expectations of a 1.5mm barrel draw and way above the highest estimate of a 2.6mm draw. This is the biggest build in 2 months at a seasonally 'weak' time of year (and biggest December build since 1993). Crude ramped overnight to regain the losses from the API dump, but dropped back to lows (under $37) before the DOE data, then crashed below $36. Furthermore, production was up in the lower 48.
Biggest build in 2 months...
[4]
This is the biggest Mid-December build sicne 1993...
[5]
And production rose...
[6]
Crude prices collapsed lower...
[7]
Charts: Bloomberg
