RBOB Fades On Surprise Product Build, New Record High Production

November 29, 2017
mm

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.

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…

US crude production rose 24k b/d – to a new record high…

Gasoline exports hit a record high…

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

Article Categories:
Financial Economics Blogs

Leave a Comment

Your email address will not be published. Required fields are marked *