WTI/RBOB Tumble As US Crude Inventory Reaches New Record High

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After API’s bigger than expected crude build, DOE confirmed the data with a much-bigger-than-expected 9.5mm build pushing total US crude inventories to a new record high. Along with a large gasoline build, WTI/RBIB prices are tumbling on the print.

 

API

  • Crude +9.94mm (+3.5mm exp)
  • Cushing -1.27mm (+500k exp)
  • Gasoline+720k
  • Distillates +1.5mm

DOE

  • Crude +9.527mm (+3.5mm exp)
  • Cushing -702k (+400k exp)
  • Gasoline +2.846mm (+500k exp)
  • Distillates -689k (-1mm exp)

DOE confirmed API’s major build – the 6th weekly build in a row. Gasoline inventories surged again.

 

Sending US crude inventories to a new record high…

 

Crude stocks  have risen +38.5 million bbl in first 41 days of the year compared with 10-yr avg rise of just +14.3 million bbl

As Bloomberg’s Javier Blas notes, this time the bulls can not claim that unusually high imports are driving up crude stocks. U.S. refiners last week bought overseas 8.5 million barrels a day, down 881,000 barrels a day from the torrid pace of two weeks ago. On a four-week average, imports are running just 9.9% above last year’s same period.

Furthermore, the U.S. exported last week crude oil at a rate of more than 1 million barrels a day — a record. That’s way more than the production of several OPEC members, including Libya, Ecuador, Gabon and Qatar.

US crude production continues to rise in trend along with lagged rig counts…

 

Bear in mind that the last 3 weeks have seen a fundamentally correct reaction lower in WTI/RBOB prices only to be algo panic bid after…

 

For now crude is bouncing as RBOB crashes….

 

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