WTI has extended its losses since last night’s surprise API-reported crude inventory build., and DOE confirmed with a surprise 3.8mm bbl inventory build and while WTI tried to rally (smaller build than API), the jump stalled at $68.00…
Crude +3.803mm (-3mm exp, -850k whisper)
Cushing -1.338mm (-500k exp)
Gasoline -2.536mm (-2mm exp)
Distillates -101k (+500k exp)
So another surprise build – not a seasonal norm – but smaller than API-reported…
US crude production dipped on the week…
NOTE: As Erik Townsend pointed out, EIA changed the rules June 1st – now they round to the nearest 100k bbl. So the week-to-week production data is now next to worthless. The reason it LOOKED LIKE a ‘surge’ of 100k bbl last week is because that was from prior weeks (reported as zero). Each time is crosses the half-way point, they bump the official number up 100k.
WTI traded below $68 ahead of the DOE data, and kneejerked up to 68 the figure on the print…
“Oil bulls have been left battered and bruised,” said Stephen Brennock, an analyst at PVM Oil Associates Ltd. in London.
“The rebalancing paused abruptly last week” as inventories likely increased, while “downside risks for the global economy and therefore oil demand growth prospects remained alive and well.”
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