WTI was still trading lower after API reported last night’s surprise crude build, and traded lower initially after DOE reported a massive surprise crude build. Additionally, US production hit 11mm b/d for the first time ever.
As Bloomberg Intelligence’s Senior Energy Analyst Vince Piazza notes, even as U.S. crude inventories drain, concerns persist over global growth amid trade tensions driven by geopolitics and an increase in OPEC quotas. Slowing demand for refined products, which is tied to higher crude prices and emerging-market struggles, has dampened optimism for U.S. refiners.
API
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Crude +629k (-4.1mm exp)
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Cushing -1.34mm (-700k exp)
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Gasoline +525k
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Distillates +1.711mm
ADOEPI
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Crude +5.84mm (-4.2mm exp) – biggest build since April
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Cushing -860k (-700k exp)
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Gasoline -3.17mm
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Distillates -371k
After last week’s massive draw (and API’s surprise build), this week saw a huge rebound in crude inventories
Permian pipeline bottlenecks continue to pressure discounts…
But production resumed its rise (after a 3-week stall) up 100k b/d, hitting 11mm b/d for the first in history…
WTI was trading lower into the DOE data (after API’s surprise build) and slid further after the surprise build…
But then – as the machines stepped in – WTI rallied!!??
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