WTI Jumps After Biggest Crude Draw Since 2016

WTI was trading lower overnight after the bounce on API's big crude draw was eviscerated by escalating trade wars. However, when DOE reported a massive 12.63mm crude draw - the most since Sept 2016 - WTI prices spiked (after kneejerking lower first).

Bloomberg's Michael Jeffers notes that American oil stocks are now at the lowest level since February of 2015, flying in the face of bumper production. The refineries are in overdrive for this time of year, even as utilization fell slightly. Exports are still over 2 million barrels a day. 

API

  • Crude -6.8mm

  • Cushing +1.952mm (-1.3mm exp)

  • Gasoline -1.59mm

  • Distillates -1.925mm

DOE

  • Crude -12.63mm (-3.79mm exp) - biggest draw since Sept 2016

  • Cushing -2.062mm (-1.3mm exp)

  • Gasoline -694k (-1mm exp)

  • Distillates +4.125mm - biggest build since Jan 2018

Following last week's surprise crude build (from DOE), API reported a much bigger than expected crude draw

Bloomberg Intelligence Energy Analyst Fernando Valle notes that exports of refined products need to rise if crack spreads are to recover from recent lows. Rising crude prices have dampened demand growth just as red-hot refinery utilization has flooded domestic markets, pushing down margins.

All eyes remain on US crude production which has now flatlined for 4 straight weeks...

 

Amid Permian pipeline bottlenecks.

“U.S. production is constrained because we don’t have enough pipelines coming out of the Permian,” James Williams, president of energy researcher WTRG Economics, says.

WTI prices spiked on the big crude draw from API but once trade tariff headlines hit, prices tumbled. Then when DOE printed, the machines went nuts, initially puking lower then spiking higher.

 

 

 

Comments

TradingRat AynRandObjectivist Wed, 07/11/2018 - 10:43 Permalink

LOL that means you got it wrong... Oil can't reach $100 again... just look at how much we have improved the technology and able to extract oil so much. In the near future, the fusion energy might replace Oil, or we could see the full autonomous extraction of oil by robots. I think people always look at things so small because they have small penis and vagina. Look how big is the earth..... 

In reply to by AynRandObjectivist

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adr Wed, 07/11/2018 - 11:27 Permalink

Bloomberg's Michael Jeffers notes that American oil stocks are now at the lowest level since February of 2015, flying in the face of bumper production.

 

Hmm, weren't the record high stocks of oil in 2015 the reason why oil fell to $26?

If Oil stocks were above the level that gave us $26 nearly the entire time, why did oil rally to $75?

Where did all the oil go? It wasn't consumed.

Oh yeah, the export restriction was lifted and over 2 million barrel per day were taken off the books. Close to 1.5 billion barrels  that were in storage just went poof.

All of the storage facilities in the USA were going to be overflowing, so something had to be done. How could you rally oil to $50+ if the storage tanks are full?

Never underestimate the shady dealings of the overlords. there will will be done, nomatter the cost.

venturen Wed, 07/11/2018 - 11:35 Permalink

ignore the FACTS that crude imports dropped 6% for the week...2% for the year....net imports are lowest on record...dropping 45% for the WEEK! Or production up 17% for the week.....14% for the year. Product exported up 15% for the week.

 

Ya...it was the draw....going to be harder to explain when we are an exporter of OIL!

 

Another FAKE market.....just keep printing

kavabanga Wed, 07/11/2018 - 12:25 Permalink

Crude oil been rejecting this strongly monthly zone for the past couple days, if price breaks below the consolidation, and retest of the small zone would be a good potential short to the TL somewhere on 67-69$ zone. We'll fall further I guess.