WTI/RBOB Jump After DOE Confirms Surprise Crude Draw, Production Slows

    Following last night’s surprise crude draw (from API), and USD weakness, WTI/RBOB rallied overnight, but faded into the DOE data. However, as DOE confirmed API’s reported surprise crude draw (-1.616mm) and production slipped very modestly, prices jumped.

    API

    • Crude -907k (+2.9mm exp)

    • Cushing -2.644mm

    • Gasoline +1.644mm

    • Distillates -3.563mm

     

    DOE

    • Crude -1.616mm (+2.35mm exp)

    • Cushing -2.664mm

    • Gasoline +261k (+742k exp)

    • Distillates -2.422mm (-1.1mm exp)

    In quite a shocking moment – it seems API was right for once – DOE reports a 1.6mm crude draw – and RBOB prices are up as Gasoline saw a smaller than expected build.

    As Bloomberg notes, Cushing is being emptied at a very, very, very fast pace. It’s the 9th consecutive week of crude draws, bringing the total to its lowest since December 2014.

    Bloomberg’s Javier Blas notes that U.S. oil exports surged last week above the key 2 million barrels a day mark for the second time ever, contributing hugely to the draw in crude stocks.

    Once again all eyes are on US crude production (after yet another week of rig count increases) as it tops Saudi Arabia and closes in on Russia’s output, spoiling the OPEC-Deal party. But, US crude production slowed last week… if you squint, you can see it dropped 1k b/d…

    NOTE – Lower 48 production rose 10k b/day to a new record…

     

    WTI/RBOB bounced notably higher overnight (weak USD and API-reported draw) but faded into the DOE data. However, the confirmation of a crude draw (and smaller than expected gasoline build) sent both WTI/RBOB back to the highs…

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