Crude Inventories Rise For Record 15th Straight Week, Production Drops

DOE Inventory data confirmed API data overnight with a 5.3mm bbl build (notably better than expectations of 3.2mm and significantly higher than last week's 1.29mm build). Cushing saw a build that was the 2nd lowest since November 2014 (even though at +738k the build was well above expectations of +550k). Crude prices appear to jumping higher on the fact that production was a 2nd consecutive production cut (albeit very modest) even though we have seen such short-term drops before (and it was only Alaska that saw a drop -3.4% - lower 48 was flat 0.0%).

Inventories rose more than expected...

 

But production fell modestly for the 2nd week in a row...

 

Driven only by Alaska... lower 48 was flat...

 

Which appears to be the catalyst for the pump in crude...

 

 

Charts: Bloomberg