Crude Tumbles As Inventory Draw Disappoints Despite Production Plunge
By Tyler Durden
Following last night's larger-than-expected API-reported biggest drawdown in 13 months, DOE reported a mere 2.2mm draw (well below API's 6.7mm draw and expectations of a 2.5mm draw). Perhaps even bigger was the very small 122k draw in gasoline stocks compared to API's 3.6mm draw and WTI is tumbling in reaction. However, crude production plunged by 2.25% last week – the biggest drop since Sept 2013.
API
- Crude -6.736mm (-2.5mm exp)
- Cushing +80k
- Gasoline -3.603mm
- Distillates -2.305mm
DOE
- Crude -2.223mm (-2.5mm exp)
- Cushing -82k
- Gasoline -122k
- Distillates -1.57mm
This is the 7th weekly draw in a row but notably below API… Additionally, Gulf coast gasoline inventory up 1.8 million, east coast down 600k
Production crashed 2.25% – the biggest drop since Sept 2013… driven by a 31.5% plunge in Alaska production (0.5% drop in Lower 48)
And the reaction in crude is ugly…
Charts: Bloomberg
Source: Crude Tumbles As Inventory Draw Disappoints Despite Production Plunge
