Following API's big builds in Crude, Cushing, and Distillates, DOE reported notable inventory builds across the entire energy complex with a bigger than expected crude build sparking initial selling pressure in WTI. Every segment was 'worse' than expected (from a price perspective) but the machines have decided it is time to panic buy after another spurious OPEC headline.
API
- Crude +3.65mm (+1mm exp)
- Cushing +1.13mm (+150k) – biggest since August
- Gasoline -155k (-1.1mm exp)
- Distillates +2.98mm – first build in 8 weeks
DOE
- Crude +5.274mm (+1mm exp)
- Cushing +691k (+150k) – biggest since August
- Gasoline +746k (-1.1mm exp) – first build in 4 weeks
- Distillates +310k- first build in 8 weeks
Regional Breakdown:
- PADD1 17.282mb -0.843
- PADD2 141.012mb +1.054
- PADD3 255.407mb +4.939
- PADD4 24.353mb -0.137
- PADD5 52.229mb +0.261
Crude build bigger than expected but builds across the entire complex for the first time since August…
Bear in mind, as Bloomberg's Vince Piazza notes, bloated stockpiles are still over 33% above their five-year norms and seasonally, Gasoline is due to start building soon…
Last week saw the biggest surge in US production since May 2015 and this week's small drop still leaves production at 5-month highs
The reaction – an initial dump then trumped when this hit –RUSSIA ENERGY MINISTER SAYS SEES BIG CHANCES FOR OPEC TO AGREE
via http://ift.tt/2f4qUFy Tyler Durden