Oil Slides After Bigger Than Expected Gasoline Build

After a day of frenetic OPEC headlines being all that matters, oil traders may briefly focus on fundamentals as API reports an unexpectedly large build in gasoline inventories ( +2.68mm vs 900k exp). Overall crude, cushing, and distillates saw inventory draws which left wti slightly lower post-data.

 

API

  • Crude -1.28mm (+1mm exp)
  • Cushing -140k (-100k exp)
  • Gasoline +2.68mm (+900k exp)
  • Distillates -350k

After last week's across the complex builds, it was ony gasoline that saw a build this week (which fits seasonally)

 

A rollercoaster day in WTI thanks to OPEC headlines

 

Rather notably, as Bloomberg points out, the prompt WTI M1-M2 spread widened to -90c today, the biggest discount since April. "There’s plenty of supply around,” Zahir say, adding that a deepening contango encouraging more oil to go into storage.

via http://ift.tt/2gHRXtb Tyler Durden

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