Wednesday, August 24, 2016

"Crude Slammed After Inventory Builds Across Entire Oil/Product Complex"

WTI $46.69, down $1.41, rebounding off the day's low.
A lot of folks want to hear soothing words out of OPEC but man there's a lot of oil and product around.
From ZeroHedge:
Following API's reported biggest crude build in 4 months overnight, which weighed on oil prices, DOE exasperated the pain by signaling builds across the entire complex. Crude's build of 2.5m barrels (biggest in 3 months) was less than API but more than the expected 850k draw but Cushing saw a big build and gasoline and distillates both saw builds despite expectations of big draws. As a reminder, US Crude production surged by the most since May 2015 the prior week but fell modestly in the last week. Crude tumbled back to $47 on the print.
  • Crude +4.464mm (-850k exp)
  • Cushing +417k (+200k exp)
  • Gasoline -2.2mm (-1.7mm exp)
  • Distillates -834k
  • Crude  +2.5mm (-850k exp)
  • Cushing  +375k (+200k exp)
  • Gasoline +36k  (-1.7mm exp)
  • Distillates +122k
DOE reports biggest build in 3 months and builds cross the entire complex... This is the first time since Feb 2016 that all 4 major segments have seen a build in the same week....

...Production surged most since May 2015 the prior week but fell this week.


Here's the 5-minute chart from FinViz: