The exuberance following last night's surprising inventory draw from API has been erased as DOE reports inventory builds across the entire energy complex - crude +2.15mm, distillates +1.4mm, gasoline +3.04mm, and Cushing +36k. WTI Crude has dropped back below $31, erasing API-driven overnight gains.
API reported:
- Crude down 3.3 million
- Gasoline up 750,000
- Distillate down 2 million
- Cushing: up 175,000
But DOE reports:
- *CRUDE OIL INVENTORIES ROSE 2.15 MLN BARRELS, EIA SAYS
- *DISTILLATE INVENTORIES ROSE 1.40 MLN BARRELS, EIA SAYS
- *GASOLINE INVENTORIES ROSE 3.04 MLN BARRELS, EIA SAYS
With Cushing also seeing a build (14th week)...
US TOTAL CRUDE AND PRODUCTS STOCKS rose +3.4 million bbl last week and now +134 million bbl (+14%) above 2015.
Since December 11th, gasoline inventories have built 41 million barrels. Over the same period last year we built 26.3 million barrels.
And oil is plunging....
Even though Production did drop modestly WoW... (with a 0.6% drop in The Lower 48)
Charts: Bloomberg