WTI/RBOB Drop After Bigger Than Expected Crude Build

An ugly week or two for WTI/RBOB continued today ahead of tonight's inventory data and after API reported big builds in crude, gasoline, and distillates; both WTI and RBOB dropped further.

API

  • Crude +3.947mm (+3.05mm exp)

  • Cushing -2.319mm (-1.7mm exp)

  • Gasoline +4.634mm

  • Distillates +1.1mm

3rd weekly crude build in a row and big builds in products too...

 

Not been a pretty week or two for the record spec longs... and it just got a little worse...

 

Of course the big story on traders' minds is surging US production and sudden questions about potential global growth spooked by stocks...

 

Comments

MusicIsYou Tue, 02/13/2018 - 16:53 Permalink

No matter what the Fed chairman says the Fed will continue to intervene in the markets. The Reason? Because no politician wants to be held accountable for 100,000's of people losing their jobs, or retirement. So the Frankenstein monsters will continue to pull the print/voltage lever until some day sparks start shooting out of the market networks and the whole thing burns to the ground taking 100% of everybody down with it.

Sonny Brakes Tue, 02/13/2018 - 17:13 Permalink

Do you ever get the impression that the media might be planting these stories in such a way that they, themselves, can take financial advantage of the market swings, mostly because they are the information gatekeepers? Do you not think that enterprises such as Bloomberg and Reuters might be in the perfect position to take advantage of their positions of power?

MK ULTRA Alpha Tue, 02/13/2018 - 17:15 Permalink

The US drive for global energy dominance means a market share war between major petroleum producing nations.

A supply glut means the OPEC quota agreement didn't work, it failed.

The OPEC quota system will fall apart when Russia begins full production at the end of the year or sooner. It was Russia that gave up market share to assist OPEC strategy. Saudi Arabia was the leader of trying to destroy US shale oil producers with an all out production increase which didn't work. Then the new plan, OPEC production quotas to decrease supply to increase the price of oil which has now failed.

We're in an oil war for global market share.

adolphz Tue, 02/13/2018 - 17:38 Permalink

SHEPWAVE and their oil people called it again. QQQ is hitting sheps targets and may be about ready to turn again. I willkeep you all up to date