Following last night's massive inventory build report from API (biggest in 8 months), DOE piled on by confirming a 14.42mm barrel build – the biggest in the 34 year history of EIA data. Cushing saw a small build but Gasoline and Distillates saw drawdowns. Crude and RBOB prices are tumbling on the news, not helped by the 3rd weekly rise in US Crude production.
API
- Crude +9.3mm (+1.54mm avg. exp)
- Cushing +1mm (-250k exp)
- Gasoline -3.5mm (-1mm exp)
- Distillates -3.1mm
DOE
- Crude +14.42mm (+2mm exp)
- Cushing +89k (+235k exp)
- Gasoline -2.2mm (-1mm exp)
- Distillates -1.8mm (-1.9mm exp)
API's biggest build in 8 months was nothing compared to the 14.4mm build from DOE – the biggest build ever. Distillates have now drawn down for 6 straight weeks. As Bloomberg's Margot Habiby reports, most of the increase in crude inventories — 8.11 million barrels out of 14.4 million overall — was in the critical Gulf Coast region, where about half of U.S. refining capacity is located.
US Crude production rose for the 3rd week in a row…
And US Crude imports soared to the highest since 2012…
U.S. avg weekly crude imports rose 28% to ~9m b/d last week, the largest volume since September 2012, according to preliminary EIA data for week ending Oct. 28.
Total U.S. imports of crude 8995k b/d vs 7016k
- PADD1: 1164k vs 884k
- PADD2: 2538k vs 2212k
- PADD3: 3814k vs 2913k, highest since July
- PADD4: 344k vs 312k
- PADD5: 1135k vs 696k
Imports into U.S. by country in b/d:
- Canada imports 3282k vs 2885k
- Saudi Arabia imports 1170k vs 983k
- Venezuela imports 835k vs 466k
- Mexico imports 688k vs 323k
- Colombia imports 602k vs 333k
- Ecuador imports 156k vs 179k
- Nigeria imports 345k vs 71k
- Kuwait imports 85k vs 198k
- Iraq imports 645k vs 505k
- Angola imports 30k vs 163k
WTI Crude had extended losses to a $45 handle overnight after the API build (and RBOB swung widely) and plunged on the print…
And finally, bear in mind that oil prices are entering a seasonally weak period…
via http://ift.tt/2enFBDw Tyler Durden