{"id":16070,"date":"2016-01-06T11:30:13","date_gmt":"2016-01-06T16:30:13","guid":{"rendered":"http:\/\/olduvai.ca\/?p=16070"},"modified":"2016-01-06T11:30:32","modified_gmt":"2016-01-06T16:30:32","slug":"wti-crude-plunges-to-34-handle-after-record-gasoline-inventory-build","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=16070","title":{"rendered":"WTI Crude Plunges To $34 Handle After Record Gasoline Inventory Build"},"content":{"rendered":"<h3 class=\"title\"><a href=\"http:\/\/www.zerohedge.com\/news\/2016-01-06\/wti-crude-plunges-34-handle-gasoline-distillate-inventories-soar\" target=\"_blank\">WTI Crude Plunges To $34 Handle After Record Gasoline Inventory Build<\/a><\/h3>\n<div class=\"tabs\">Following<a href=\"http:\/\/www.zerohedge.com\/news\/2016-01-05\/crude-spikes-higher-api-reports-large-inventory-draw\">\u00a0last night&#8217;s API-reported large draw<\/a>\u00a0in overall crude inventories (year-end and exports driven), DOE reports a 5.09mm draw (more than expectations of a 4.1mm draw but less than API&#8217;s 5.6mm draw). However,\u00a0<strong>Cushing inventories rose for the 9th week in a row (+917k) and more troubling for the future is gasoline inventories soared 10.58mm barrels &#8211; an all-time record (and distillates rose 6.31mm barrels)<\/strong>. Crude prices already gave up their API gains and are tumbling back below $35 on this build news.<\/div>\n<div class=\"node\">\n<div class=\"content\">\n<p>DOE conmfirms API&#8217;s reported large draw but Cushing continues to build for the 9th week in a row&#8230;<\/p>\n<p><a href=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user3303\/imageroot\/2016\/01\/20160106_oil2.jpg\"><img decoding=\"async\" src=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user3303\/imageroot\/2016\/01\/20160106_oil2_0.jpg\" alt=\"\" \/><\/a><\/p>\n<p>But&#8230;<\/p>\n<ul>\n<li><strong>*GASOLINE INVENTORIES ROSE 4.78%, EIA SAYS<\/strong><\/li>\n<li><strong>*DISTILLATE INVENTORIES ROSE 4.12%, EIA SAYS<\/strong><\/li>\n<\/ul>\n<p><strong>A record build in gasoline stocks!!<\/strong><\/p>\n<p><a href=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user3303\/imageroot\/2016\/01\/20160106_oil3.jpg\"><strong><img decoding=\"async\" src=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user3303\/imageroot\/2016\/01\/20160106_oil3.jpg\" alt=\"\" \/><\/strong><\/a><\/p>\n<p>The build in distillates means that primary product may be gettiung shipped away but there is no demand.\u00a0<em><strong>So exporting oil from US helps with overall inventory decline, but massive build of gas, distillate shows clear production surplus<\/strong><\/em><\/p>\n<p>And even more worrisome,\u00a0<strong>Domestic Supply in lower 48 up 20,000 boe\/d and HIGHER than a year ago.<\/strong><\/p>\n<p>Crude jumped on the API news but gave it all up as growth fears rose overnight&#8230;<\/p>\n<p><a href=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user3303\/imageroot\/2016\/01\/20160106_oil4.jpg\"><img decoding=\"async\" src=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user3303\/imageroot\/2016\/01\/20160106_oil4_0.jpg\" alt=\"\" \/><\/a><\/p>\n<p>As we continue to remind traders &#8211;\u00a0<a href=\"http:\/\/www.bloomberg.com\/gadfly\/articles\/2015-12-23\/oil-prices-leap-after-market-mistakes-taxman-for-santa\">December ALWAYS see notably drawdowns<\/a>\u00a0as firms lighten up inventories on their balance sheet ahead of year-end to reduce tax burdens&#8230;<\/p>\n<p><a href=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user3303\/imageroot\/2015\/12-overflow\/20151229_API1.jpg\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user3303\/imageroot\/2015\/12-overflow\/20151229_API1_0.jpg\" alt=\"\" width=\"600\" height=\"300\" \/><\/a><\/p>\n<p>And judging from history,\u00a0<a href=\"http:\/\/www.bloomberg.com\/gadfly\/articles\/2015-12-23\/oil-prices-leap-after-market-mistakes-taxman-for-santa\">as Bloomberg notes<\/a>, it should resume as soon as the festive season is over:\u00a0<strong>Stocks have built by 3.2 million barrels on average in January since 1921.<\/strong><\/p>\n<p><em>Charts: Bloomberg<\/em><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>WTI Crude Plunges To $34 Handle After Record Gasoline Inventory Build Following\u00a0last night&#8217;s API-reported large draw\u00a0in overall crude inventories (year-end and exports driven), DOE reports a 5.09mm draw (more than expectations of a 4.1mm draw but less than API&#8217;s 5.6mm draw). However,\u00a0Cushing inventories rose for the 9th week in a row (+917k) and more troubling [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[3105,3756,4333,11512,11513,3419,4318],"class_list":["post-16070","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-api","tag-boe","tag-crude","tag-distillates","tag-gasoline-inventory","tag-inventory-build","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16070","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16070"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16070\/revisions"}],"predecessor-version":[{"id":16072,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16070\/revisions\/16072"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16070"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16070"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16070"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}