Following last night's huge 11.4mm barrel inventory build forecast from API (the largest since 1996), DOE reports an 8.4mm build (against analysts estimates of +4mm). It seems the blowback from the huge gasoline and inventory builds is flowing back upstream to crude but there is some good news as Cushing saw a 771k draw after 11 weeks of builds (and production dropped very modestly). On the demand side, it's just as ugly with Gasoline demand -2.5% YoY and Distillate demand down a stunning 14.8% YoY. Having tested the API ledge in prices twice this morning, WTI is hovering between $30.50 and $31.
- *CRUDE OIL INVENTORIES ROSE 8.38 MLN BARRELS, EIA SAYS
- *GASOLINE INVENTORIES ROSE 3.46 MLN BARRELS, EIA SAYS
- *DISTILLATE INVENTORIES FELL 4.06 MLN BARRELS, EIA SAYS
WTI Crude's trading machines has twice run stops back to the API ledge before this morning's inventory data...
Charts: Bloomberg