Following API’s huge 7.1mm barrel crude draw overnight, WTI prices are slightly higher (driven more by OPEC jawboning) as last week’s API errors are still on traders’ minds, but DOE confirmed a big crude draw but notable builds in gasoline and distillates surprised. However, the biggest headline is likely the 11%-plus collapse in US crude production…
API
DOE
Traders clearly did not trust the API data (after last week’s flip-flop) but DOE confirmed a big draw and notable builds in both gasoline and distillates…
As a reminder – Supplies remain bloated at about 21% above the five year average despite rising exports.
US Crude imports from Venezuela and Saudi Arabia have collapsed to record lows…
Following the previous week’s drop in production, this week saw a 12% collapse in US Lower 48 output – presumably affected by Hurricane Nate!!
The biggest drop since Hurricane Isaac in Aug 2012
Energy complex prices had limped higher into the DOE print – with even OPEC jawbining unable to really budge them… and the oil agos are completely bewildered now after the collapse in production…
