WTI/RBOB held on to gains after last night"s surprise crude draw from API, but quickly tumbled after DOE reported a 1.9mm crude build (2nd week in a row) and significant gasoline and distillate builds. However, US crude production"s massive spike to 10.25m b/d was the big headline.
API
- Crude -1.05mm (+3.15mm exp)
- Cushing -633k
- Gasoline -227k
- Distillates +4.552m
DOE
- Crude +1.895mm (+3.15mm exp)
- Cushing -711k (-263k exp)
- Gasoline +3.414mm (+500k exp)
- Distillates +3.926mm (-1.25mm exp)
Last week"s surprise (huge) crude build from DOE was dismissed by API overnight but DOE ruined that party and showed the second weekly crude build in a row. Gasoline and Distillates stocks resumed their rise...
As Bloomberg"s David Marino notes, Total U.S. inventories grew the most since early September. It"s actually even a bigger deal than the headline number suggests: if not for a 6.4 million draw from propane/propylene and "other" oils, we"d be looking at a 10 million barrel build.
But all eyes were once again on US crude production as it smashed above 10m b/d.
As Bloomberg"s Julian Lee notes, that huge jump in crude production is not the result of a sudden burst of drilling. More likely it is the correction we expected after the earlier release of monthly data for November that showed production was already above 10 million barrels a day three months ago.
U.S. crude output hits a record high of 10.25 million bpd, surpassing both the monthly high set in Nov 1970, and Saudi Arabia"s latest production.
The reaction in WTI/RBOB was swift...
Sending WTI/RBOB lower for the 4th day in a row to one-month lows...
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