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WTI Crude Spikes After Major Crude Inventory Draw Trumps Production Increase

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Oil held gains overnight following API's surprise crude inventory draw, DOE data surprised even more with a massive 5.247mm draw (2.1mm build exp). Cushing saw the biggest draw in 6 months but we note that Gasoline inventories rose 2.469mm barrels - the biggest build since Feb. Production rose very modestly but hovers around the 8.5mm b/d level.

 

 

 

API

 

  • Crude -3.8mm (+2.1mm exp)
  • Cushing -1.96mm (-1.4mm exp)
  • Gasoline +929k
  • Distillates -2.3mm

 

DOE

 

  • Crude -5.247mm (+2.1mm exp)
  • Cushing -1.635mm (-1.4mm exp) - biggest in 6 months
  • Gasoline +2.469mm - biggest in 8 months
  • Distillates -1.24mm

 

Following last week's big build, DOE reports an even bigger draw than API. However the huge swings in Cushing (draw) and Gasoline (build) are notable.

 

20161019_DOE2_0.jpg

 

 

 

Production rose on the week but is stable around the 8.5mm b/d level still...

 

20161019_DOE3_0.jpg

 

 

 

Earlier comments from Saudi Arabian energy minister Khalid Al-Falih saying that many nations are willing to join OPEC’s planned production cut helped support the overnight gains from API data, and the DOE draw sent WTI soaring towards $52...

 

20161019_DOE1_0.jpg

 

 

 

RBOB is fading however on the big build

 

20161019_DOE4_0.jpg

 

 

 

Charts: Bloomberg

 

20161019_DOE1.jpg?1476887945

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