Crude Plunges After DOE Reports Big Build

Following last night's surprise inventory draw (1.1m via API), WTI soared above the week's high holding $45 into this morning's DOE data which was dramatically different. Instead of a draw, DOE reported a bigger-than-expected 2.00m build along with a major build at Cushing and Gasoline stocks also rose. Despite a small drop in production, WTI prices are plunging, erasing the hope-driven API ramp.

API

  • Crude -1.1m (+1.75m exp)
  • Cushing +1.9m
  • Gasoline -400k
  • Distillates -1.02m

DOE

  • Crude  +2.00m (+1.75m exp)
  • Cushing +1.746m
  • Gasoline +1.61m
  • Distillates -1.70m

The biggest build at Cushing since Dec (after the pipeline delay ends) and surprisingly large build overall...

 

Production fell modestly on the week...down 13 of 14 weeks

 

And the reaction in crude...erasing the API exuberance...Of course, as we noted earlier, Gartman's flip-flop to bullish was the signal for oil to crash...

 

And here is the situation for the all important gasoline market which has served as the biggest bullish catalyst in recent weeks, as supposedly the US has had a massive surge in gasoline demand.

Gasoline consumption:

 

And gasoline stocks: