Following last night's (API-reported) big product draws (and crude build), WTI slid lower (RBOB higher) into this morning's DOE data, but both WTI/RBOB prices jumped after the report showed major product draws (and a Cushing destocking). WTI rallied despite a big surprise build (+856k vs -3mm exp) and a major rebound in production after Hurricane Nate.
- Crude +519k (-3mm exp)
- Cushing -55k
- Gasoline -5.753mm (+1.7mm exp)
- Distillates -4.949mm
- Crude +856k (-3mm exp)
- Cushing -237k
- Gasoline -5.47mm (+1.7mm exp)
- Distillates -5.246mm
"Seasonally, you’d expect crude inventories to grow,” Michael Hiley, head of over-the-counter energy trading at LPS Partners, told Bloomberg, and it did - well above expectations. However the big product draws were more notable
Gasoline exports soared, Distillates exports jumped, and total crude/product exports hit a new record high...
Following last week's collapse in production due to Hurricane Nate, production surged back...
WTI prices had slid after an initial bounce following API overnight (and RBOB held gains) into the DOE print, and both rallied initialy after the print...
Prices have been “trading elevated because of the OPEC comments that they will do whatever it takes to bring the market into balance.”