Following last week's inventory draws across the entire energy complex, API was expected to report a seasonally 'normal' 1.54mm barrel build but instead printed a massive 9.3mm build - the biggest since March. Distillates saw a 6th straight week of draws but Cushing saw the biggest build in 3 months. Gasoline saw the biggest draw in 2 months (-3.5mm) but RBOB prices are sinking along with WTI.
- Crude +9.3mm (+1.54mm avg. exp)
- Cushing +1mm (-250k exp)
- Gasoline -3.5mm (-1mm exp)
- Distillates -3.1mm
As a reminder, crude stockpiles are still 29% above seasonal norms and perhaps today's surprise build reminded a few of the seasonal tendencies from here....
Crude (one-month lows) and RBOB has slid most of the afternoon into the API print but the surprise build sent both to the lows of the day...
As Phil Streible, senior market strategist at RJO Futures in Chicago, said. “The global glut continues to march on”