WTI/RBOB had bounced back modestly today (on OPEC jawboning) ahead of the API data with bulls hoping the trend of gasoline builds stalls. With the effects of Harvey beginning to fade (and exports at record highs), we are getting a cleaner picture of the state of the energy complex and it's no so pretty for the record-long-specs. Crude inventories saw a surprise 3.1mm build (expectations for a 2.4mm draw), Cushing saw the 7th straight week of restocking and while gasoline inventories dropped, distillates saw a big build.
Cushing continues to be restocked but the crude build is the biggest surprise and while gasoline saw a draw, the distillates build offsets that excitement...
WTI/RBOB had rallied on the day into the API print...But the initial reaction was selling after th eprint
“A lot below $50 and producers do produce a lot less, but conversely, much over $55, there is going to be a lot of extra production. We’re range-bound, but it’s $50-$55 and not $45-$50,” Jay Hatfield, a portfolio manager at the InfraCap MLP exchange-traded fund, says. “The inventory report will be critical”