Crude prices remain lower since last week's inventory data indicated a surprise (albeit small) build (but bounced today). With expectations for a 2mm draw this week, API reported crude inventories plunged 7.431mm last week - the most since September. However, Gasoline and Distillates saw huge inventory builds (biggest since Jan 2016) and WTI prices whipsawed.
API
- Crude -7.431mm (-2mm exp)- biggest draw since Sept 2016
- Cushing +482k (+900k exp)
- Gasoline +4.25mm (+1mm exp)- most since Jan 2016
- Distillates +5.244mm (-800k exp) - most since Jan 2016
Distillates build was notably bigger than median expectations...
#Distillate #DOE Estimates (in mbbls) for Week Ending December 30, 2016 pic.twitter.com/F3ESCYtUp8
— EnergyBasis (@EnergyBasis)
Crude kneejerked higher on the crude draw print but dropped quickly on the product builds only to rebound to unch...
