WTI/RBOB prices soared once again today amid hopes for an 8th straight week of crude draws (and overall stockpiles near 5y average levels). API did not disappoint with a massive 11.19mm crude draw (biggest since Sept ’16) and continued builds in gasoline and distillates. WTI Knee-jerked to the highs of the day.

“The market is anticipating a pretty good draw in the crude oil storage number,” Bob Yawger, director of futures at Mizuho Securities USA Inc. in New York, said by telephone.

API

  • Crude 11.19mm (-421k exp) – biggest draw since Sept 2016
  • Cushing -2.156mm (-1.5mm exp)
  • Gasoline +4.685mm (+3.25mm exp)
  • Distillates +4.635mm (+2.25mm exp)

    • Last week’s massive product inventory builds (and ongoing crude draw – last week biggest draw since Aug) continued with a massive crude build (11.19mm would be the bigg4est crude draw since Sept 2016 if it hold sup for DOE data).

     

    Overall, US crude stockpiles are nearing the five-year average after three years above that level…

     

    The last time oil inventories in the world’s biggest economy touched these levels was September 2015.

    WTI touched $63 intraday today ahead of the API print and spiked modestly higher on crude’s huge draw…

     

    “Production cuts and demand are continuing to rebalance the market,” Gene McGillian, a market research manager at Tradition Energy in Stamford, Connecticut, said by telephone.

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