WTI/RBOB prices sank for the second day ahead of tonight’s API as anxiety over a “slack demand period” builds and US production surges. While expectations were for a modest crude build, inventories jump over 3mm bbl – ending the 10-week draw-streak and sending WTI lower..
“The crude market is looking at the weakness in stock market. That’s making the oil traders a little nervous,” Phil Flynn, senior market analyst at Price Futures Group Inc. in Chicago, said by telephone.
At the same time, “there is an expectation that we will see the first increase in supply in a long time.”
API
- Crude +3.229mm (+900k exp) – biggest build since Sept.
- Cushing -2.383mm
- Gasoline +2.692mm (+2mm exp)
- Distillates -4.096mm
Party’s Over – after 10 weeks of crude draws, API reported a big build and a 12th week of gasoline builds…
WTI/RBOB prices tumbled most since December today ahead of the API print (and amid a weaker dollar).
And the reaction after the API print was quick knee-jerk higher than tumble…
“Exports are being hurt a bit by the reduction in the Brent-WTI spread, which should also help inventories replenish. This is the slack demand period,” said John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund.
It’s also “registering with folks that crude oil output is just soaring.”
The post WTI/RBOB Drop After Surprise Crude Build appeared first on crude-oil.news.