WTI/RBOB Tumble As US Crude Inventories Hit New Record High, Production Surges

After API's surprise gasoline build (sending RBOB prices lower), DOE reported a draw (though smaller than expected) but crude saw the 8th weekly build in a row - pushing US crude inventories to a new record high. Production continued to surge (above 9mm) to new cycle highs.

 

API

  • Crude +2.502mm (+3mm exp)
  • Cushing +544k
  • Gasoline +1.84mm (-1.5mm exp)
  • Distillates -3.73mm

DOE

  • Crude +1.501mm (+2.2mm whisper)
  • Cushing +495k (-400k whisper)
  • Gasoline -546k (-1mm whisper)
  • Distillates -925k (-2.1mm whisper)

The 8th weekly build in a row for crude but Gasoline's draw is the most notable (relative to API)...

 

This is a new record high for US crude inventories...

As Bloomberg's Javier Blas notes, U.S. crude inventories have increased eight consecutive weeks. I think we can conservatively say the rebalancing isn't happening -- or isn't happening as the bulls expected.

US Crude production continues to rise in trend with the lagged rig count...

 

WTI prices were higher and RBOB lower post-API heading into the DOE data - RBOB erased the decline then faded...

 

Remember what happens about 15 minutes after the data - the algo panic bid.

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