WTI Extends Losses After Surprise Crude Build, January Cushing Stocks At 2008 Lows

Oil prices were lower this morning, amid broad derisking after weak macro data and no immediate escalation in the Middle East.

API

• Crude -2.5mm (-800k exp)

• Cushing -2.0mm

• Gasoline +600k (+1.4mm exp)

• Distillates -2.1mm (-800k exp)

DOE

• Crude +1.23mm (-800k exp)

• Cushing -1.97mm

• Gasoline +1.16mm (+1.4mm exp)

• Distillates -2.54mm (-800k exp)

The official data showed a crude build (opposite to API’s draw and expectations). Cushing stocks decline for the 4th straight week, and Distillates stocks tumbled…

Source: Bloomberg

The Biden admin added to the SPR (+892k barrels) for the 10th straight week…

Source: Bloomberg

Stocks at the Cushing Hub fell once again, now at their lowest for this time of year since 2008…

Source: Bloomberg

US Crude production rebounded from the storm shut-ins…

Source: Bloomberg

WTI has extended its losses on the crude build…

However, despite today’s down day, oil is set for its first positive month since September.