Home Economics RBOB Slides After Surprise Gasoline Inventory Build; New Record Glut In Crude

RBOB Slides After Surprise Gasoline Inventory Build; New Record Glut In Crude

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After a volatile day of White House rumors and denials, and OPEC headlines, WTI and RBOB ended the day lower ahead of tonight’s API data which showed a slightly smaller than expected crude build (+2.5mm against expectations of +3mm). However RBOB prices tumbled after an unexpected build.

 

API

  • Crude +2.502mm (+3mm exp)
  • Cushing +544k
  • Gasoline +1.84mm (-1.5mm exp)
  • Distillates -3.73mm

While crude built again (the 8th week in a row), it was the swing back to a build in gasoline that is most notable…

If this holds for DOE data tomorrow it will be another new recod high for crude inventories.

Notably, along with denied reports of a shift in ethanol mandates, and reports of 94% OPEC cut complicance, U.S. shipments of crude by rail averaged ~377k b/d in December vs ~432k b/d in November, lowest since May 2012, EIA’s Petroleum Supply Monthly report shows.

 

The initial reaction post-API was weakness in RBOB (surprise build) and a jump in WTI but that quickly gave way as the realization was that it was still a build…



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