WTI Tumbles To 2-Mo Lows After Huge Surprise Crude Build

While last night’s API-reported crude build may have been a sign, DOE just reported a crude build twice as large (and massively larger than the expected draw). This sent WTI back below $65, near 2-month lows.

API

  • Crude +3.66mm (-2.5mm exp)
  • Cushing +1.64mm  (+500k exp)
  • Gasoline -1.56mm
  • Distillates +1.94mm

DOE

  • Crude +6.805mm (-2.5mm exp) – biggest build since March 2017
  • Cushing +1.64mm  (+500k exp)
  • Gasoline -740k
  • Distillates +3.566mm

Record-high refinery runs couldn’t keep crude stockpiles from surging – The 6.88mm crude build is the biggest since March 2017 (and Cushing stocks surged after 12 weeks of draws) as Distillates inventories rose for the 3rd week in a row…

US Crude production ticked up (remember that new formulations mean that production jumps in 100k intervals now). The increase in production looks to be due to higher production from Alaska, driven by an increase at Prudhoe Bay, which had been lower for the past several weeks.

All of which sent WTI back below $65…

To 2-month lows…

As Bloomberg notes, August is a bad month for WTI to be suffering from a bouncing dollar and worries about demand destruction from trade wars and EM currency weakness causing economic slowdowns. That’s because crucial late-summer oil-product demand data has been damaging, and might again damage, the bullish case through stockpile builds. Last week’s EIA data showing the largest gasoline build for early August in the last 20-plus years is colliding with this week’s EIA-reported biggest crude build in 17 months is not supportive of the ‘no brainer’ crude narrative.

Related Post

"You Put Your Politics Before Us" –... Former CIA Director John Brennan said on Sunday that he is strongly considering legal action after the Trump administration revoked his security clear...
Yemen’s Navy Hits Saudi Warship Off Yemen’s Coast... HODEIDA, YEMEN — On Wednesday Yemen’s navy targeted a Saudi warship off Yemen’s western coast in retaliation for the Saudi-led coalition’s deadly mili...
Yemen’s Houthis Down Saudi Jet as It Returned From... On Thursday morning, Yemen’s Air Defense Force shot down an aircraft belonging to the Saudi-led coalition with a surface-to-air missile after it took ...
Yemeni Forces Strike Abu Dhabi Airport with Domest... Sana’a (GPA) – Yemeni forces fighting against the Saudi-led coalition unveiled a new domestically made drone on Thursday by striking the Abu Dhabi int...
Yemen: Fake ‘News’ That’s Mixed Into America’s Mai... On Friday, August 10th, CNN headlined “Saudi-led strike kills dozens of children on school field trip in Yemen” and reported as if the United Stat...
Yankees, Falcons, Marlins, Rays, Nationals, Oriole... There are more bad news for Papa John's two days after reports emerged that founder and chairman John Schnatter used a racial slur: despite Schnatter'...
World Remains Blind To "Ticking Time Bomb&quo... A “TICKING time bomb” on Australia’s doorstep is counting down to war - and an expert says the world is blind to it. Authored by Gavin Fernando via...
Woman Caught Smuggling Enough Fentanyl on a Bus to... Authorities in Missouri caught a woman smuggling enough fentanyl to kill 1.5 million people as she traveled from Los Angeles to New York by bus. ...