Oil prices have roller-coastered since last night's API report of the biggest crude draw since September (hurricane-impacted), but kneejerked higher after DOE confirmed a big crude draw (though less than API), the largest since Dec 2016 and 8th weekly draw in a row. Distillates saw a surprise build, crude exports hit a record high, and production rose again to its highest since Aug 2015.
API
- Crude -8.67mm (-3mm exp) – biggest since Sept 2016
- Cushing -753k
- Gasoline -1.726mm (-1.5mm exp)
- Distillates +124k
DOE
- Crude -6.43mm (-3mm exp)
- Cushing -747k (-500k exp)
- Gasoline -2.86mm (-1.5mm exp)
- Distillates +394k (-700k exp)
8th weekly crude draw in a row and biggest since Dec 2016… surprise build in distillates
U.S. COMMERCIAL CRUDE STOCKS are drawing down much earlier and harder than normal for time of year http://pic.twitter.com/WRWVPPrYsU
— John Kemp (@JKempEnergy) June 1, 2017
Bloomberg's Laura Blewitt notes that Today is June 1st — an important day for Bakken crude. As of today, Energy Transfer's controversial Dakota Access Pipeline is now in service, providing a key outlet for oil to the U.S. Gulf Coast.
Lower 48 production continues to rise… from 8.815mm to 8.835mm – highest in 21 months…
Rystad Energy says U.S. crude production will exceed 10 million barrels a day before year-end, echoing sentiment from other analysts.
Crude exports hit a new record high…
Gasoline demand at its highest since the peak last summer – seasonally ahead…
It's been a week since the OPEC extension deal and prices continue to hold lower… GLENCORE CEO SAYS OPEC HAS LOST MARKET CONTROL DUE TO SHALE – but prices were holding above API lows heading into the DOE print (ticking up into the data)= and bounced higher (though only marginally) on the data…
Close up…
via http://ift.tt/2ru4vIB Tyler Durden