Crude Chaotic After API Reports Bigger Than Expected Inventory Build

Against expectations of a 3.75mm expectation (and following last week's massive build), API reports that crude inventories saw a very slightly bigger than expected 3.8mm build. WTI crude had plunged into the data and went entirely chaotic as it hit (swining in a 50c range) before settling lower. The biggest reason for the adverse reaction is not so much the headline build as the jump in gasoline again: gasoline inventories surged 6.6MM in the past week, after dropping in the previous week, on expectations of a far smaller 1.7MM gasoline build, once again hinting that the problem is as much demand as it is supply.

Coming into this week's print, gasoline builds continue to stymie crude (which saw a huge build) but Cushing saw a draw...And then API hit with builds across the entire complex...

  • Crude inventories: +3.8M barrels
  • Cushing +0.1M barrels
  • Distillate +0.4M barrels
  • Gasoline +6.6M barrels

With the spike in Gasoline the biggest deal...



Oil's reaction was chaotic...


And finally, don't forget that U.S. crude inventories are at levels last seen when President Herbert Hoover was battling the Great Depression.


Charts: Bloomberg