After API"s surprise gasoline build (sending RBOB prices lower), DOE reported a draw (though smaller than expected) but crude saw the 8th weekly build in a row - pushing US crude inventories to a new record high. Production continued to surge (above 9mm) to new cycle highs.
API
- Crude +2.502mm (+3mm exp)
- Cushing +544k
- Gasoline +1.84mm (-1.5mm exp)
- Distillates -3.73mm
DOE
- Crude +1.501mm (+2.2mm whisper)
- Cushing +495k (-400k whisper)
- Gasoline -546k (-1mm whisper)
- Distillates -925k (-2.1mm whisper)
The 8th weekly build in a row for crude but Gasoline"s draw is the most notable (relative to API)...
This is a new record high for US crude inventories...
As Bloomberg"s Javier Blas notes, U.S. crude inventories have increased eight consecutive weeks. I think we can conservatively say the rebalancing isn"t happening -- or isn"t happening as the bulls expected.
US Crude production continues to rise in trend with the lagged rig count...
WTI prices were higher and RBOB lower post-API heading into the DOE data - RBOB erased the decline then faded...
Remember what happens about 15 minutes after the data - the algo panic bid.
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