Oil Dumps’n’Pumps Despite Crude, Gasoline Inventories Surge

crudeoilTyler Durden:  Crude has soared back above $31 as it seems a new bullish narrative around seasonally high crude refining has sparked dreams of demand.

US REFINERIES processed a seasonal record 15.6 million b/d of crude last week pic.twitter.com/v2GUgUVwvQ

— John Kemp (@JKempEnergy) February 3, 2016

 

As we detailed earlier…

After initial weakness, crude prices have rallied since last night’s across the board inventory build reported by API (especially gasoline). Against headline expectations of a 3.8mm build, DOE reported a huge 7.8mm rise with Gasoline also surging 5.9mm barrels. The overnight ramp gains on OPEC rumors have been erased and WTI is back below $30.

API reported:

  • Crude inventories: +3.8M barrels
  • Cushing +0.1M barrels
  • Distillate +0.4M barrels
  • Gasoline +6.6M barrels

DOE reported:

  • Crude inventories: +7.79M barrels (whisper 3.8m)
  • Cushing +0.75M barrels
  • Distillate -0.78M barrels (whisper -0.26m)
  • Gasoline +5.9M barrels (whisper 5m)

 

Production fell very modestly for the 2nd week in a row.

 

WTI dropped after API then ripped on more OPEC-Russia chatter… only to fade after Dudley’s comments failed into the DOE data…

 

And finally, don’t forget that U.S. crude inventories are at levels last seen when President Herbert Hoover was battling the Great Depression.

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