woensdag 14 juni 2017

WTI Plunges To $44 Handle After Inventory And Demand Disappointment

After tumbling last night following API's surprise builds, WTI/RBOB levitated on a weak dollar into the DOE print but initialy kneejerked lower on the data which showed a smaller than expected crude draw and confirmed another significant gasoline build. After a small drop last week, crude production rose once again to cycle highs. API
- Crude +2.75mm (-2.45mm exp)
- Cushing -833k
- Gasoline +1.794mm (-1.15mm exp)
- Distillates -1.451mm
- Crude -1.66mm (-2.45mm exp)
- Cushing -1.156mm (-1.4mm exp)
- Gasoline +2.096mm (-1.15mm exp)
- Distillates +328k (+550k exp)
Last night's surprise build in crude was not confirmed (but the DOE data showed a smaller than expected draw). Cushing stockpiles fall to the lowest level of the year, dropping more than a million barrels for a second week. The total is now 62.2 million barrels, plenty of room in the tanks there. However, Gasoline inventories rose once again...

After a modest drop in production in the Lower 48 last week, US crude production rose once again this week to its cycle highs...

As Bloomberg's Laura Blewitt notes, Gasoline demand dropped for the second week in a row after hitting a record-high 9.822 million barrels a day, according to the one-week preliminary data. With another build in stockpiles reported, gasoline futures are down to the lowest levels since November...

WTI/RBOB prices rallied into the print this morning on the back of a dramatically weaker dollar but once the data printed, selling began...