Crude Confusion As Gasoline, Distillates See Biggest Inventory Build In A Year

Crude prices remain lower since last week's inventory data indicated a surprise (albeit small) build (but bounced today). With expectations for a 2mm draw this week, API reported crude inventories plunged 7.431mm last week - the most since September. However, Gasoline and Distillates saw huge inventory builds (biggest since Jan 2016) and WTI prices whipsawed.

API

• Crude -7.431mm (-2mm exp)- biggest draw since Sept 2016
• Cushing +482k (+900k exp)
• Gasoline +4.25mm (+1mm exp)- most since Jan 2016
• Distillates +5.244mm (-800k exp) - most since Jan 2016

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Distillates build was notably bigger than median expectations...

#Distillate #DOE Estimates (in mbbls) for Week Ending December 30, 2016 pic.twitter.com/F3ESCYtUp8

— EnergyBasis (@EnergyBasis) January 4, 2017

Crude kneejerked higher on the crude draw print but dropped quickly on the product builds only to rebound to unch...

(Click on image to enlarge)