WTI Extends Losses After Surprise Build, Crude Production Jumps To Record High

By Tyler Durden of ZeroHedge

Wednesday, November 8, 2017 11:00 AM EST

WTI/RBOB extended losses post-API data overnight, but DOE data sparked some algo chaos as a surprise crude build (+2.24mm vs -2.45mm exp) was offset by a bigger than expected gasoline draw (exactly opposite what API reported). In addition, US crude production jumped to a new all-time high - take that OPEC!

API

Crude -1.562mm (-2.45mm exp)
Cushing +812k
Gasoline +520k (-1.85mm exp)
Distilates-3.133mm

ADOEPI

Crude +2.24mm (-2.45mm exp)
Cushing +720k
Gasoline -3.31mm (-1.85mm exp)
Distilates -3.359mm

Last night's API data showed smaller crude draw and a surprise gasoline build, but DOE surprised with a big crude build and biugger gasoline draw (and a notable build in Cushing stocks)...

Production has normalized back at cycle highs as storm effects fade, surging to new cycle highs in the last week

And total US Crude output just hit a new record high...

WTI was back below $57 and RBOB below $1.80 ahead of the DOE data, sinking after last night's surprise gasoline build

“If the EIA data disappoints then it could take further steam off the market,” says Jan Edelmann, analyst at HSH Nordbank.

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Moon Kil Woong • 8 years ago • Contributor's comment

Thanks, it was interesting. A increase in production makes sense after the drop due to weather. We will see if it lingers or was just producers trying to get the oil to market as fast as they can after the shutdowns.

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