WTI/RBOB prices recovered from their drop after API reported a big surprise gasoline build overnight ahead of the DOE data which showed a major crude draw (and smaller than API-reported build in gasoline). Along with no change in production, this sparked buying in both WTI/RBOB as the kneejerk reaction.
API
DOE
Major draw in crude (considerably larger than API and expectations) is dominating the headlines but the continued restocking in Cushing and another big build in gasoline is likely weighing on prices
However, as a reminder, Crude-oil inventories remain bloated at more than 24% above the five-year average, with production and exports recovering. Refined-product markets are tighter heading into winter.
Notably, implied demand slumped in the last week…
Last week saw the rig count rise but US crude production was unchanged for the Lower 48, having rebounded from the effects of Harvey
Total U.S. exports of crude oil and refined petroleum products surged last week above 7 million barrels a day, a hefty 1 million barrels a day higher than the previous week — and, of course, an all-time high.
Both WTI and RBOB prices recovered their losses from API data overnight (but were sliding into the DOE print) with Saxo Bank’s Head of Commodity Strategy, Ole Hansen, noting that “the market is basically fretting another bearish report.” But today’s DOE reports offered enough to get the algos into buying mode, spiking prices initially…
