Oil Dumps'n'Pumps Despite Crude, Gasoline Inventories Surge

Crude has soared back above $31 as it seems a new bullish narrative around seasonally high crude refining has sparked dreams of demand...

 

As we detailed earlier...

After initial weakness, crude prices have rallied since last night's across the board inventory build reported by API (especially gasoline). Against headline expectations of a 3.8mm build, DOE reported a huge 7.8mm rise with Gasoline also surging 5.9mm barrels. The overnight ramp gains on OPEC rumors have been erased and WTI is back below $30.

 

API reported:

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

DOE reported:

  • Crude inventories: +7.79M barrels (whisper 3.8m)
  • Cushing +0.75M barrels
  • Distillate -0.78M barrels (whisper -0.26m)
  • Gasoline +5.9M barrels (whisper 5m)

 

Production fell very modestly for the 2nd week in a row...

 

WTI dropped after API then ripped on more OPEC-Russia chatter... only to fade after Dudley's comments failed into the DOE data...

 

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

 

 

  • *U.S. CRUDE STOCKS RISE ABOVE 500M BBL FOR FIRST TIME SINCE 1930

 

 

And finally for those who exclaim this is just a supply issue - it's not!!!

  • EIA: DISTILLATE DEMAND -16.0% VS SAME 4 WKS LAST YR

 

Charts: Bloomberg