WTI Slides After Bigger Than Expected Builds Across The Oil Complex

After two weeks of large crude and gasoline builds, API reported bigger than expected builds in crude, gasoline, and distillates (and smaller than expected draw in Cushing) which sent WTI prices tumbing, crossing back below the $53 Maginot Line once again.

 

API

  • Crude +2.93mm (+2.5mm exp)
  • Cushing -145k (-500k exp)
  • Gasoline +4.85mm
  • Distillates +1.95mm

The 3rd weekly build in crude in a row and 4th large gasoline build in a row along with a smaller than expected draw at Cushing…

 

And this comes on the heels of the biggest rise in rig counts in 3 years and surge in production…

 

And after a day dominated by Iraq production cuts, border tax implications, and US/Canada pipeline discussions, the inventory reaction in WTI was an immediate drop to a $52 handle…

 

Crossing that crucial $53 Maginot Line…

via http://ift.tt/2kfuYDH Tyler Durden

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