After last night's surprise API-reported crude build, oil prices dipped and ripped on a tumbling dollar heading into this morning's DOE data and then jumped higher as DOE negated API's build by reporting a 1.75mm draw (less than the expected 2.67mm though). This is the 6th weekly crude draw in a row. Gasoline and Distillates also saw draws. After 14 weeks of production rises, US crude output dropped last week.
Unlike API, DOE repored a crude draw - the 6th weekly draw in a row...though we note this draw was less than expectations (as was the Gasoline draw)
Interestingly, Bloomberg's Bert Gilbert notes a very large jump in other oils stockpiles this week, drives total stocks higher. This is the biggest week on week increase in other oils stocks since 2010.
After 14 weeks of production rises, US crude output dropped last week.
So where are Saudi Arabia's crude production cuts? Bloomberg's Javier Blas notes- Don't look for them in U.S. oil import data.
According to the EIA, Saudi crude shipments surged last week to 1.376 million barrels a day, the HIGHEST weekly reading in ten weeks and up 406,000 barrels a day from the previous week. Saudi Arabia is shipping to the U.S. Currently more oil it did between September and December last year. Very odd.
One country that's certainly cutting supplies to the U.S.: Kuwait. The Gulf emirate shipped exactly ZERO barrels last week to U.S. refiners, only the third time it hasn't supplied a single barrel over a week since 2012. The previous weeks occurred in March 2016 and October 2015.
WTI/RBOB dropped on the APi print but the collapse in the dollar has sparked buying into the DOE print. Notably energy was offered into the print but once the data hit spiked higher...