Crude prices are lower this morning following API's huge reported build at Cushing (biggest since 2008) and fears over OPEC deal realities. With expectations for a crude draw (on lower imports), DOE confirmed a bigger than expected overall draw but also Cushing saw a 3.78mm barrel build – the biggest since 2008. Both Distillates and Gasoline also saw bigger than expected builds as US production dropped very modestly.
API
- Crude -2.21mm (-1.37mm exp)
- Cushing +4.01mm (+2.87mm exp) – biggest since 2008
- Gasoline +828k (+1.59mm exp)
- Distillates +4.08mm (+1.24mm exp)
DOE
- Crude -2.389mm (-1.37mm exp)
- Cushing +3.783mm (+2.87mm exp)
- Gasoline +3.425mm (+1.59mm exp)
- Distillates +2.501mm (+1.24mm exp)
Biggest Cushing build since Dec 2008 offsets the bigger than expected draw in crude overall…
As the US rig count continues to rise so the trend of US crude production has turned, but it dropped very modestly over the last week…
And the reaction in crude (after overnight weakness but energy stock strength)
Notably the surge in Cushing inventories has put more pressure on the front-month spread…
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