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WTI/RBOB Spike On OPEC Headlines After Bearish Inventory/Production Data

Summary:
Update: WTI/RBOB was fading after DOE data but then Kuwait dropped the following meaningless headline: OPEC JMMC RECOMMENDS EXTENSION, DIDN'T FINALIZE DURATION. And the algos took over... *  *  * Last night's API-reported surprise crude build sparked selling that not even Russia/Saudi jawboning could rescue, but DOE data showed the exact opposite with a big ...

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Update: WTI/RBOB was fading after DOE data but then Kuwait dropped the following meaningless headline: OPEC JMMC RECOMMENDS EXTENSION, DIDN'T FINALIZE DURATION. And the algos took over...

WTI/RBOB Spike On OPEC Headlines After Bearish Inventory/Production Data

*  *  *

Last night's API-reported surprise crude build sparked selling that not even Russia/Saudi jawboning could rescue, but DOE data showed the exact opposite with a big crude draw and even bigger gasoline draw. Added to a new record high in US crude production and RBOB is fading and WTI is not rallying.

As Bloomberg reports, the U.S. has proven at least one thing this year with its expansion of crude and products exports: we are becoming more energy independent than ever before.

Last week net imports of all crude and refined products dipped to a new record low.

WTI/RBOB Spike On OPEC Headlines After Bearish Inventory/Production Data

That's coupled with record-high gasoline exports, a truly spectacular sea change in our world's oil flows.

API

  • Crude +1.82mm (-2.95mm exp)
  • Cushing -3.178mm - most since Sept 2009
  • Gasoline -1.529mm (+1.2mm exp)
  • Distillates +2.696mm (+200k exp) - biggest since July

DOE

  • Crude -3.43mm (-2.95mm exp)
  • Cushing -2.914mm - biggest draw since Sept 2009
  • Gasoline +3.63mm (+1.2mm exp) - biggest build since July
  • Distillates  (+200k exp) - biggest buils since Jan

DOE data showed the exact reverse of API with big surprise draw in crude and build in gasoline... Additionally Cushing saw the biggest destocking since Sept 2009 last week...

WTI/RBOB Spike On OPEC Headlines After Bearish Inventory/Production Data

US crude production rose 24k b/d - to a new record high...

WTI/RBOB Spike On OPEC Headlines After Bearish Inventory/Production Data

Gasoline exports hit a record high...

WTI/RBOB Spike On OPEC Headlines After Bearish Inventory/Production Data

 

WTI was lower and RBOB higher heading into the DOE data but the trend reversed after on the surprise bearish product builds...

WTI/RBOB Spike On OPEC Headlines After Bearish Inventory/Production Data

WTI/RBOB Spike On OPEC Headlines After Bearish Inventory/Production Data
Tyler Durden
Tyler Durden (a pseudonym) represents the idea that a return to truly efficient markets is a possibility and a necessity. After having experienced the inner workings of capitalism at various asset managers and advisors, Tyler believes that the current model is flawed and a deleveraging at every level of modern society is needed to reinspire the fundamental entrepreneurial spirit. Visit his blog: ZeroHedge (http://www.zerohedge.com/)

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