WTI Jumps After Harvey Prompts US Crude Production Collapse, Biggest Inventory Build In 6 Months
API
- Crude +2.79mm (+4mm exp) – biggest build in 5 months
- Cushing +669k (+1mm exp)
- Gasoline -2.544mm (-5.2mm exp) – biggest draw in 6 weeks
- Distillates -610k
DOE
- Crude +4.58mm (+4mm exp)
- Cushing +797k (+1mm exp)
- Gasoline -3.20mm (-5.2mm exp)
- Distillates -1.396mm
The inventory changes reported by the API were much smaller than those forecast by analysts. As a reminder, Saxo Bank’s Ole Hanson notes that “inventory data later is a lot of moving parts which could be quite skewed away from what we’ve seen in recent weeks.” Additionally, investors “are going to be skeptical of the data,” James Williams, an economist at energy researcher WTRG Economics, told Bloomberg. “It might be pretty flaky data this week and next, so I don’t expect to see a big market-mover”
Bloomberg’s Fernando Valle notes energy’s past week was all about Hurricane Harvey as refineries shuttered, choking output and hauling down inventories of gasoline and distillates.
Bigger than expected crude build and bigger gasoline and distillate draws than API reported…
As one might expect, Gulf Coat imports fell to a record low.
Production declined in the previous week, and with most of Texas ofline last week – Crude production in the Lower 48 collapsed…
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