After two weeks of huge builds at Cushing (most since 2008), expectations were for a 3rd big weekly build at Cushing (and draw in overall crude). Oil prices kneejerked lower as API reported a major build in overall crude inventories (4.68mm build vs expectations of a 1.5mm draw). While Cushing saw a smaller than expected build, Gasoline inventories also soared most since January.
- Crude +4.68mm (-1.5mm exp)
- Cushing +632k (+3.2mm exp)
- Gasoline +3.905mm - biggest since Jan
- Distillates +233k
Biggest gasoline build in 11 months and a big surprise crude build...
Cushing inventories are soaring...
The reaction in crude was an immediate kneejerk lower as oil was "Gartman"'d again...
“There’s obvious optimism from the bulls on OPEC’s ability to come to an agreement with non-OPEC,” Paul Crovo, Philadelphia-based oil, equities analyst at PNC Capital, says by phone. “At the same time, there’s a reasonable level of trepidation” regarding supply response from U.S. shale