Following API's larger than expected crude draw (and huge product builds), DOE reports massive builds in Distillates (+10mm – biggest sine Jan 2015) and Gasoline (+8.3mm – biggest since Jan 2016) and another big build in Cushing inventories. Crude inventories drew down 7.05mm barrels – confirming API's data. US crude production also picked up and WTI prices tumbled.
API
- Crude -7.431mm (-2mm exp)- biggest draw since Sept 2016
- Cushing +482k (+900k exp)
- Gasoline +4.25mm (+1mm exp)- most since Jan 2016
- Distillates +5.244mm (-800k exp) – most since Jan 2016
DOE
- Crude -7.051mm (-2mm exp)
- Cushing +1.074mm (+200k exp)
- Gasoline +8.307mm (+1mm exp) – most since Jan 2015
- Distillates +10.051mm (-800k exp) – most since Jan 2016
Total crude stockpiles remain over 35% above the five-year seasonal norm.Cushing jumps to the highest level since May with the sixth gain in seven weeks.
US Crude production continues to generally follow the lagged trend of the rising rig count…
Bloomberg notes that U.S. production has been trending higher since September, with the Energy Information Administration sharply increasing its weekly estimates in November and again December. Newly released monthly data for October shows the EIA underestimated output significantly (weekly figures pointed to 8.5 million barrels a day, while the monthly data was of 8.8 million barrels a day).
WTI tagged $54 this morning – higher post-API data –
via http://ift.tt/2ifjui9 Tyler Durden