Following last week's surprising builds (which sent WTI/RBOB prices lower), API reported another big crude build (+2.75mm vs an expected draw of 2.45mm) and surprise gasoline build. Crude and Gasoline futures prices immediately gave up the day's gains.
- Crude +2.75mm (-2.45mm exp)
- Cushing -833k
- Gasoline +1.794mm (-1.15mm exp)
- Distillates -1.451mm
Last week's surprise builds in crude, gasoline, and distillates upset the OPEC narrative of movement towards rebalancing and tonight's API data further weakens that case...
WTI topped $46 in the day session ahead of the API print, but as the data hit, both saw significant selling pressure...
As Bloomberg noted prior to the data, “people feel like the inventory report should be at least moderately bullish, but they don’t want to bet the farm on that,” Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts, says by phone. “It is the time of year when you expect inventory draws and high gasoline demand. Gasoline demand last week was not robust to put it lightly.”