Wednesday, January 24, 2018

WTI Tops $65 For First Time Since Dec 2014 After Crude Draw, Production Record

After API reported a surprise crude build overnight, all eyes are on the DOE data this morning which showed a smaller than expected crude draw (-1.07mm vs 2.32mm exp) but still a draw (for the 10th week in a row) compared to API"s build.



As Bloomberg"s Julian Lee notes, cold weather and a growing list of refineries undergoing maintenance probably cut crude intake for a third week. Along with rising production, this could be enough to halt the downward trend in inventories - at least for now.



API



  • Crude +4.755mm (-2mm exp) - biggest build since September

  • Cushing -3.572mm(-2.2mm exp)

  • Gasoline +4.117mm (+2.2mm exp) - 11th weekly draw in a row

  • Distillates -1.28mm (-1.1mm exp)

 



DOE



  • Crude -1.07mm (-2.32mm exp)

  • Cushing -3.15mm (-2.2mm exp)

  • Gasoline +3.1mm (+2.2mm exp)

  • Distillates +639k (-1.1mm exp)

DOE data flipped the narrative from API and saw the 10th weekly crude draw in a row (though smaller than expected) and 11th weekly gasoline draw in a row..



http://www.thefringenews.com/wp-content/uploads/2018/01/www.zerohedge.com20180124_DOE1-70326ae457c56d2044c032baecbf3ada9a7ca596.jpg



US crude production surged back from its weather-impacted plunge to a new record high last week...



http://www.thefringenews.com/wp-content/uploads/2018/01/www.zerohedge.com20180124_DOE3-0b5d877c3f59746a097546b5c5ebe42d32870969.jpg



Getting ever closer to topping Saudi production...



  • US oil production: 9.878MMbpd

  • Saudi Arabia oil production: 9.918MMbpd

http://www.thefringenews.com/wp-content/uploads/2018/01/www.zerohedge.com20180122_prod-df5137bb33743219ad68555195f492f3cde069e7.jpg



WTI rebounded a little overnight from the API tumble but RBOB was weak heading into the DOE data. WTI pushed back up above its pre-API level and after a delay, RBOB followed...



WTI is back above $65 for the first time since Dec 2014



http://www.thefringenews.com/wp-content/uploads/2018/01/www.zerohedge.com20180124_DOE4-fa96376d9d05e72d26046dadc9491b247f62bd6b.jpg



 

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