Update: The machines saw a dip and panic-bid it…
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After bouncing modestly following a record 12-day losing streak into a bear market, last night’s API-reported surprisingly large crude build spooked WTI back down once again. Those losses have been reversed after a sudden plunge at 5amET, since then WTI is a one way street higher (above $57).
“The fact that U.S. crude-oil stocks are still rising sharply shows that the oil market is already oversupplied,” Commerzbank AG analyst Eugen Weinbergwrote in a report.
API
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Crude +8.79mm (+3.2mm exp) – bigest build since Feb 2017
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Cushing +726k (+2.5mm exp)
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Gasoline +188k
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Distillates -3.224mm
DOE
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Crude +10.27mm (+3.2mm exp) – biggest build since Feb 2017
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Cushing (+2.5mm exp)
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Gasoline -1.41mm
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Distillates
This is the eight weekly crude build in a row (and the largest build since February 2017)…
Overall, US Crude inventories have risen for 8 straight weeks, rebounding back to the 5-year average (and well above the 1980-2014 normal range)…
After last week’s surge in production (+100k), US is now ahead of both Russia and Saudi Arabia…
WTI hovered around $57 as the DOE dats hit and kneejerked lower
Amid oil’s recent slide, trading desks were abuzz with chatter of “negative gamma.” The term describes how traders frenetically sell futures to manage their options exposure, driving down prices and bringing more options into the danger zone.
For now the massive squeeze in the Nattie-Crude pair is unwinding…
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