Oil prices have roller-coastered since last night"s API report of the biggest crude draw since September (hurricane-impacted), but kneejerked higher after DOE confirmed a big crude draw (though less than API), the largest since Dec 2016 and 8th weekly draw in a row. Distillates saw a surprise build, crude exports hit a record high, and production rose again to its highest since Aug 2015.
API
- Crude -8.67mm (-3mm exp) - biggest since Sept 2016
- Cushing -753k
- Gasoline -1.726mm (-1.5mm exp)
- Distillates +124k
DOE
- Crude -6.43mm (-3mm exp)
- Cushing -747k (-500k exp)
- Gasoline -2.86mm (-1.5mm exp)
- Distillates +394k (-700k exp)
8th weekly crude draw in a row and biggest since Dec 2016... surprise build in distillates
U.S. COMMERCIAL CRUDE STOCKS are drawing down much earlier and harder than normal for time of year pic.twitter.com/WRWVPPrYsU
— John Kemp (@JKempEnergy) June 1, 2017
Bloomberg"s Laura Blewitt notes that Today is June 1st -- an important day for Bakken crude. As of today, Energy Transfer"s controversial Dakota Access Pipeline is now in service, providing a key outlet for oil to the U.S. Gulf Coast.
Lower 48 production continues to rise... from 8.815mm to 8.835mm - highest in 21 months...
Rystad Energy says U.S. crude production will exceed 10 million barrels a day before year-end, echoing sentiment from other analysts.
Crude exports hit a new record high...
Gasoline demand at its highest since the peak last summer - seasonally ahead...
It"s been a week since the OPEC extension deal and prices continue to hold lower... GLENCORE CEO SAYS OPEC HAS LOST MARKET CONTROL DUE TO SHALE - but prices were holding above API lows heading into the DOE print (ticking up into the data)= and bounced higher (though only marginally) on the data...
Close up...
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