WTI Drops On Large Gasoline Build, Oil Demand Slump
Crude prices have roller-coastered over the last 12 hours or so as last night's API (large gasoline build) sparked selling, then buying waves hit during the late-Asia/early-Europe session, then selling returned with a vengance during the early US session as Kanda's comments sparked dollar strength and sent commodities lower.
The dismal home sales print sparked dollar weakness and sent oil prices back up into the green ahead of the official inventory data.
API
Crude +914k (-200k exp)
Cushing -350k
Gasoline +3.84mm (-900k exp) - biggest build since Jan 2024
Distillates -1.18mm
DOE
Crude +3.59mm (-200k exp, whis +800k)
Cushing -226k
Gasoline +2.65mm - biggest build since Jan 2024
Distillates -377k
Confirming API's report, the official data shows a considerable crude inventory build and the largest rise in gasoline stocks since January...
Source: Bloomberg
The Biden admin added a shockingly large 1.285mm barrels to the SPR last week - the largest since June 2020. Overall this was the biggest weekly increase in stocks in two months...
Source: Bloomberg
US implied crude demand plunged last week...
Source: Bloomberg
US Crude production was unchanged just shy of record highs as rig counts slipped south...
Source: Bloomberg
WTI was trading just in the green ahead of the official data, around $81.20; and dropped back towards the $80 level on the print...
As Bloomberg's Lucia Kassai reports, it's hard to see any saving graces in the EIA report of this week.
Overall we’ve seen surprise builds in crude oil and gasoline inventories, softer demand across gasoline, diesel and jet, and refineries reduced utilization rates in all PADD regions.