WTI/RBOB held on to gains after last night’s surprise crude draw from API, but quickly tumbled after DOE reported a 1.9mm crude build (2nd week in a row) and significant gasoline and distillate builds. However, US crude production’s massive spike to 10.25m b/d was the big headline.
API
DOE
Last week’s surprise (huge) crude build from DOE was dismissed by API overnight but DOE ruined that party and showed the second weekly crude build in a row. Gasoline and Distillates stocks resumed their rise…
As Bloomberg’s David Marino notes, Total U.S. inventories grew the most since early September. It’s actually even a bigger deal than the headline number suggests: if not for a 6.4 million draw from propane/propylene and “other” oils, we’d be looking at a 10 million barrel build.
But all eyes were once again on US crude production as it smashed above 10m b/d.
As Bloomberg’s Julian Lee notes, that huge jump in crude production is not the result of a sudden burst of drilling. More likely it is the correction we expected after the earlier release of monthly data for November that showed production was already above 10 million barrels a day three months ago.
U.S. crude output hits a record high of 10.25 million bpd, surpassing both the monthly high set in Nov 1970, and Saudi Arabia’s latest production.
The reaction in WTI/RBOB was swift…
Sending WTI/RBOB lower for the 4th day in a row to one-month lows…
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