Wednesday, July 13, 2016

"Oil Extends Losses After Biggest Distillates Build In 6 Months, Production Spike"

The Tuesday API and the Wednesday EIA figures continue to be at dramatic variance, to the point the signs are opposite, so until they come back together we'll wait for the EIA numbers before posting.
Brent $46.85 down $1.62; WTI $45.03 down $1.77.

From ZeroHedge:
Following last night's surprising inventory builds (from API), DOE once again totally dismissed the headline with a 2.55mm draw. However, the numbers are all over the place with major builds in gasoline (1.2mm) and distillates (+4.058mm - the biggest in six months). Last week's plunge in crude production (Alaska-driven) was followed by a 0.6% surge in production this week - biggest since Oct 2015. Crude prices had extended their post-API losses into the DOE data, kneejerked higher on the hesadline then plunged on production and distillates.

  • Crude +2.2mm (-3mm exp)
  • Cushing -166k (-900k exp)
  • Gasoline +1.5mm
  • Distillates +2.6mm
  • Crude -2.55mm (-3mm exp)
  • Cushing -232k (-900k exp)
  • Gasoline +1.21mm
  • Distillates +4.06mm
Biggest Distillates build in 6 months but the 8th week in a row of crude draws...

Last week's big plunge in US crude production (driven by a seasonal collapse in Alaska) was followed by a bounce back biggest rise since Oct 2015...