WTI $40.28, down $1.17.
Oil Pumps'n'Dumps As DOE Reports 2nd Biggest Inventory Build In A Year, Production Drops
Following last night's API-reported yuuge build in crude of 8.8mm barrels (and draw in gasoline and Cushing - confirming Genscape's earlier report), DOE reports today an even bigger 9.36m barrel build - the 2nd biggest build in a year. Crude prices were confused as this massive build was offset by a drop in crude prioduction to Nov 2014 lows and a big draw at Cushing... but for now Oil is extending losses. Finally we note that gasolineprices are now flat from January last year - less unequivocally good than before.
Even more than API reported...
- *CRUDE OIL INVENTORIES ROSE 9.36 MLN BARRELS, EIA SAYS
- *GASOLINE INVENTORIES FELL 4.64 MLN BARRELS, EIA SAYS
- *DISTILLATE INVENTORIES ROSE 917,000 BARRELS, EIA SAYS
While the Cushing draw is "good" news, it appears everyone is now dumping on the East and Gulf Coasts:
But the crude build was offset by a drop in production...
- East Coast +1.8
- Midwest -0.1
- Gulf Coast +9.0
- Rocky Mount +0.1
- West Coast -1.4
Crude reacted poorly, then the algpos ripped it higher, then realitry set back in...