Tuesday, November 1, 2016

"Crude, Gasoline Tumble After Biggest Inventory Build In 8 Months"

We've been waiting for the Wednesday EIA numbers before posting ever since the API numbers started not just disagreeing with EIA but some weeks actually having opposite signs. However...

This is nuts, from ZeroHedge:
Following last week's inventory draws across the entire energy complex, API was expected to report a seasonally 'normal' 1.54mm barrel build but instead printed a massive 9.3mm build - the biggest since March. Distillates saw a 6th straight week of draws but Cushing saw the biggest build in 3 months. Gasoline saw the biggest draw in 2 months (-3.5mm) but RBOB prices are sinking along with WTI.

  • Crude +9.3mm (+1.54mm avg. exp)
  • Cushing +1mm (-250k exp)
  • Gasoline -3.5mm (-1mm exp)
  • Distillates -3.1mm
As a reminder, crude stockpiles are still 29% above seasonal norms and perhaps today's surprise build reminded a few of the seasonal tendencies from here....MORE

Here's the crash:


WTI $46.33 down another 53 cents after the drop during the daytime session.