Following last night's major build (from API), DOE reported a bigger than expected Crude build (3.5mm vs 3.25 exp). Crude prices jerked higher on this news as it was less than the API print of +7.1mm build and Gasoline and Distillates inventories dropped. However, the gains are not holding as Cushing inventories rose 333k barrels (the 15th build in the last 16 weeks.
API:
- Crude +7.1mm (3mm exp)
- Cushing +307k (300k exp)
- Gasoline +569k (-1mm exp)
- Distillates -267k (-700k exp)
DOE:
- *CRUDE OIL INVENTORIES ROSE 3.50 MLN BARRELS, EIA SAYS
- *CUSHING CRUDE OIL INVENTORIES ROSE 333,000 BBL, EIA SAYS
- *DISTILLATE INVENTORIES FELL 1.66 MLN BARRELS, EIA SAYS
- *GASOLINE INVENTORIES FELL 2.24 MLN BARRELS, EIA SAYS
So overall crude inevntory was less than API (but API just caught up t last week's miss) and was more than expected. Cushing saw another build – which is a major problem as we already noted that it is denying storage requests.
The reaction is a knee-jerk spike (for now)…
Charts: Bloomberg
via Zero Hedge http://ift.tt/1p4mpgD Tyler Durden