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.
- 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.”