Crude Tumbles As Inventories Surge For 10th Week In A Row And Production Rises Despite Demand Drop

By Tyler Durden of Zero Hedge

Writer at ZeroHedge • Dec 2, 2015 at 12:01 PM EST

DOE reports that total crude inventories rose for the 10th week in a row (up by 1.177mm barrels). This is a huge surprise relative to the 800k draw that analysts expected as total product demand dropped 1.6% relative to last year.

Confirming last night's API report, DOE reports that total crude inventories rose for the 10th week in a row (up by 1.177mm barrels). This is a huge surprise relative to the 800k draw that analysts expected as total product demand dropped 1.6% relative to last year. Which all makes panicked cash-flow sense as production rose by 37k bpd.

10th weekly build in a row...

Production rises to highest since Aug 28th...

Which is happening as demand tumbles...

GASOLINE DEMAND -0.6% VS SAME 4 WKS LAST YR;
TOTAL PRODUCT DEMAND -1.6% VS SAME 4 WKS LAST YR

And the reaction...

Charts: Bloomberg

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