Despite the desperate jawboning of the Saudis and OPEC today - trying to tell everyone to ignore Russia - crude ended the day at its lows, testing towards $52 handle. When API reported a much bigger than expected crude build, WTI prices tumbled. RBOB prices surged though as Gasoline inventories drewdown by the most since April 2014.
- Crude +11.6mm (+1.4mm exp)
- Cushing +788k
- Gasoline -5.00mm
- Distillates -2.9mm
With Crude and Gasoline inventories already at or near record highs, this week's massive Crude build is the 9th weekly build in a row. The Gasoline draw was the biggest since April 2014...
As a reminder, US shale output is surging, Russia is flat (to higher) in the last month as OPEC cuts get ignored...
EIA said this morning that "U.S. crude oil production is now expected to reach an all-time high in 2018... to an avg of 9.7 mbd."
Prices reacted instantly by puking lower in both WTI and RBOB but the RBOB draw saw prices reverse...