WTI Crude Plunges To $34 Handle After Record Gasoline Inventory Build
DOE conmfirms API’s reported large draw but Cushing continues to build for the 9th week in a row…
But…
- *GASOLINE INVENTORIES ROSE 4.78%, EIA SAYS
- *DISTILLATE INVENTORIES ROSE 4.12%, EIA SAYS
A record build in gasoline stocks!!
The build in distillates means that primary product may be gettiung shipped away but there is no demand. So exporting oil from US helps with overall inventory decline, but massive build of gas, distillate shows clear production surplus
And even more worrisome, Domestic Supply in lower 48 up 20,000 boe/d and HIGHER than a year ago.
Crude jumped on the API news but gave it all up as growth fears rose overnight…
As we continue to remind traders – December ALWAYS see notably drawdowns as firms lighten up inventories on their balance sheet ahead of year-end to reduce tax burdens…
And judging from history, as Bloomberg notes, it should resume as soon as the festive season is over: Stocks have built by 3.2 million barrels on average in January since 1921.
Charts: Bloomberg
