WTI/RBOB Rise After Surprise Crude Inventory Draw

Both WTI/RBOB slid notably lower on the day amid equity market chaos, OPEC comments, and chatter about US production reaching 11m b/d sooner than expected. API printed an unexpected 1.05mm crude draw and WTI managed a small pop.

“The mood of the market will get a lot more positive as the stock market mood gets more positive,” Phil Flynn, senior market analyst at Price Futures Group Inc. in Chicago, said by telephone. Meanwhile, there’s concern about being “too long ahead of tonight’s API report.”

API

  • Crude -1.05mm (+3.15mm exp)
  • Cushing -633k
  • Gasoline-227k
  • Distillates +4.552m

Last week's surprise crude build - breaking the streak of draws - has prompted expectations of a build again this week from analysts, but API shows a draw. The big build in distillates was also very notable...

 

The move in oil prices is “linked to what’s going on in the broader markets,”Tamar Essner, an analyst at Nasdaq Inc. in New York, said by telephone. “Markets tend to move in lockstep. In panic situations, markets tend to move together in a coordinated way.”

But we do note that as stocks ramped into the close, WTI/RBOB did not but very modestly popped higher on the API data

 

Comments

Ink Pusher Tue, 02/06/2018 - 17:32 Permalink

***SURPRISE !!!***

It's another incredibly conveniently placed frivolous and fictitious drawdown report !

The stark reality is;

Nothing moved and nobody is moving in that direction * except for maybe Gartman et Al..

cheech_wizard Tue, 02/06/2018 - 18:29 Permalink

Why is it everyone of these articles always states a "surprise crude inventory draw"?
For fuck sakes, get yourself better forecasters, or realize that when the weather turns fucking frigid, people are going to use more energy to keep themselves warm.

Standard Disclaimer: My fucking electric bill for the apartment I'm renting doubled from the previous month.
Because even though I have the thermostat set to 68F, the heater never turned off.
I also made this comment before reading anyone else's comment. Color me Jack's complete lack of surprise.