WTI Sinks After Surprise Crude Build

Despite UAE oil minister jawboning, WTI/RBOB was sold today heading into the API data and extended losses after crude showed a surprise build (+1.82mm vs -2.95mm exp). Cushing saw a massive destocking and RBOB was steady after gasoline showed a surprise draw.

 

API

  • Crude +1.82mm (-2.95mm exp)
  • Cushing -3.178mm - most since Sept 2009
  • Gasoline -1.529mm (+1.2mm exp)
  • Distillates +2.696mm (+200k exp) - biggest since July

Following last week's small crude draw and gasoline build, hope was high but API showed a surprise crude build (and surprise gasopline draw)...

 

The kneejerk reaction to the API was WTI lower and RBOB higher

“Everyone’s focus is on OPEC,” said John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund, in a telephone interview. “The takeway is, it’s not going to be a clean nine-month extension and that’s why you are seeing downward pressure here. We know that the Russian oil companies are pushing back on extending this thing through all of next year.”

Comments

happyfrog Tue, 11/28/2017 - 16:44 Permalink

CoT report showing huge amount of specs in WTI.  It's going to be entertaining watching them all rush for the exit once the OPEC meeting is over.

Nobodys Home Tue, 11/28/2017 - 17:04 Permalink

SURPRISE!
You never can tell how much gas those pesky drivers might need...During the holiday season, with the largest estimate of Thanksgiving travel ever. Surprise!

Who coulda node...as Cog might say.

Bobbyrib Tue, 11/28/2017 - 17:20 Permalink

The traders should buy even more to push the price even further up to fuck the middle class out of even more money. It's only the Fed's 1s and 0s they're gambling with at this point anyway.