WTI/RBOB Plunge After Inventory Hits Record High, Production Surges

After a sizable build in crude and draw in gasoline overnight from API, WTI and RBOB are lower (legged down on Libya production news). DOE data confirmed the API data with a sizable crude build and gasoline and distillates extending their draw streak. US crude production rose once again - the highest in 13 months.

 

API

  • Crude +4.539mm (+3mm exp)
  • Cushing +1.968mm
  • Gasoline -4.934mm (-2.4mm exp)
  • Distillates -883k

DOE

  • Crude +4.945mm (+3mm exp)
  • Cushing +1.42mm (+1.1mm exp)
  • Gasoline -2.81mm (-2.4mm exp)
  • Distillates -1.91mm (-1.5mm exp)

Crude inventory expectations had risen into the print and DOE data confirmed a notable build. Gasoline drew down but less than API and Cushing saw another notable build...

 

Cushing inventories are at their second highest level in history...

 

A new record high for US crude inventories... (note that Crude storage in ARA rises 7.3%, Genscape weekly data show, so European inventories are also soaring)

Last week's stats showed a decline of 816,000 barrels from the SPR. This draw was expected as part of the ongoing sale from the SPR.  This week we should see another draw, though likely less, around 600,000 barrels or 86k bbls/d.  These stocks will likely be added to commercial storage.

Still no real sign of the output cuts having an impact on inventory levels in the U.S.

US Crude Production contonues to trend higher to 13-month highs with lagged rig counts...

Crude Exports tumbled as Imports surged...

WTI/RBOB pumped-n-dumped after API data then tumbled this morning on Libya production data. The DOE data sent both plunging but RBOB is bouncing back a little. NOTE - Brent tumbled below $50

 

It appears the panic-buying-algo is back...