Having extended yesterday's losses on the back of API's unexpectedly large distillates inventory build, DOE data confirmed an even bigger crude inventory build (+2.276mm vs ~1.3mm build exp.) Gasoline drew down less than API reported and Distillates built considerably more than expected (+1.5mm vs +275k exp). While production slipped lower, crude prices tumbled on the inventory news, back to $45.50.
API
- Crude +942k (+1.5mm exp)
- Cushing -620k
- Gasoline -1.6mm (-1.25mm exp)
- Distillates +3mm (+275k exp)
DOE
- Crude +2.276mm (+1.3mm exp)
- Cushing -1.039mm
- Gasoline -691k (-1.25mm exp)
- Distillates +1.496mm (+275k exp)
The second weekly build in crude and a big build in Distillates…
- U.S. GULF COAST CRUDE STOCKS REACH HIGHEST SEASONAL LEVELS LAST WEEK ON RECORD – EIA
- *U.S. WKLY CRUDE IMPORTS RISE TO HIGHEST SINCE SEPT. 2012: EIA
After a big surge in production two weeks ago, it has now been largely erased following the last 2 weeks declines…
And having tested down to a $45 handle, crude inched above $46 ahead of the print then plunged…
Charts: Bloomberg
via http://ift.tt/2cqZqv9 Tyler Durden