WTI/RBOB extended losses following API’s surprisingly large crude build (not helped by risk-off and dollar’s spike), but jumped initially after DOE reported a smaller-than-API crude build of 1.64mm. WTI prices shrugged off the fact that US Crude production hit a new record high.

API

DOE

This is the 4th weekly crude build in the last 5 weeks (but less than API), However, Cushing saw its biggest restocking since March 2017…

Fears are building again of a renewed glut in crude as oil prices head for their longest losing streak in a month…

Of course, US crude production remains a key swing factor and rose once again last week to a new record high…

WTI/RBOB prices were sliding into the DOE data but bounced after crude’s inventory build was less than expected…

Inventory data is driving prices, said Tamas Varga, an analyst at PVM Oil Associates in London. “Refinery maintenance is in full swing,” causing “big builds in crude-oil stocks and big draws in products,” he said.

The front of the WTI forward curve was pushing toward contango this morning ahead of the expected build in oil inventories at the storage hub in Cushing…