Oil Jumps Above $49 As Crude Production Tumbles, Inventories Drop

Following last night's across the board inventrory drawdown from API, DOE data was more mixed with a surpsingly large build in gasoline stocks but bigger than expected Distillates and total crude inventory drawdowns. Production tumbled 0.63% MoM, the biggest drop in 2 months and back to Sept 2014 lows. Crude prices spiked above $49 for the firest time since Brexit.

API

  • Crude -3.86mm (-2.5mm exp)
  • Cushing -1.207mm (-900k exp)
  • Gasoline -416k
  • Distillates -832k

DOE

  • Crude -4.05mm (-2.5mm exp)
  • Cushing -951k (-900k exp)
  • Gasoline +1.367mm
  • Distillates -1.801mm

6th week of crude inventory draws, Distillates back into drawdown as Gasoline built.

 

Interestingly as Cushing saw a draw, East Coast inventories are soaring…

  • U.S. EAST COAST GASOLINE STOCKS ROSE TO RECORD LEVELS LAST WEEK – EIA

Production dropped the most in 2 months…

 

Which has sent crude prices back above $49…

 

Charts: Bloomberg

via http://ift.tt/29aE3Lj Tyler Durden

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