WTI Holds Near 18 Year Lows After Inventory Build, Record Production

With Russia-Saudi (supply) standoff continuing and the global demand suck as nation by nation locks down from Covid-19, oil prices collapsed to their lowest since 2002 (with WTI trading with a $24 handle)…

API

• Crude -421k (+3.1mm exp)

• Cushing +66k

• Gasoline -7.8mm (-2.4mm exp)

• Distillates -3.6mm (-2.3mm exp)

DOE

• Crude +1.954mm (+3.1mm exp)

• Cushing +563k

• Gasoline -6.18mm (-2.4mm exp)

• Distillates -2.94mm (-2.3mm exp)

As opposed to API’s surprise draw, DOE data confirmed analysts’ expectations for an 8th weekly build in a row (while products once again saw major draws)…

Source: Bloomberg

US Crude Production picked back up to a record high…

Source: Bloomberg

WTI was trading around $25.50 ahead of the DOE data and extended losses after the crude build…

Finally, Bloomberg shows what has happened during the last 3 oil price wars…

Source: Bloomberg

In other words, the rout could have a while yet to run, if past price wars are anything to go by.