Crude BTFD Algo MIA As Oil Slumps On “Surprisingly” Bearish Data

Will someone please remind us again how we’ve gotten it wrong all along about crude and about how this market is going to balance any day now?

Will someone also please remind us about how OPEC cuts are definitely going to offset record US production and massive inventories?

The reason we need a reminder is because the EIA just shattered the API “hope” by reporting a giant build (so not a draw) in crude and a below consensus gasoline draw.

• Cushing crude +1,413k (Median Est. -150k Bbl)
• PADD 3 crude +2,741k
• Gasoline -618k vs est. -1,750k
• PADD 1B gasoline -547k
• Distillates -536k vs est. -1,000k
• PADD 1 Distillates -3,372k
• Refinery utilization +1.5 ppt vs est. +0.5 ppt
• Refinery crude inputs +203k b/d
• Crude imports -374k b/d
• Crude production +52k b/d

Here’s what happened next:

(Click on image to enlarge)

And the BTFD algo is MIA.