WTI/RBOB Slide After Smaller Than Expected Crude Draw, New Record High Production

Jon Alternative Media, Blogosphere, Energy

With WTI at its highest since July 2015, vol at 8mo lows, and the front-end flipped into backwardation for the first time since Nov 2014, it appears a lot of hope is priced into continued equlilibration (and OPEC). Last night’s API (crude draw) provided some more confirmation but this morning’s DOE data disappointed with a smaller than expected crude draw, and production rose once again to a new record high.
‘Domestic production is going to be the big nugget that everybody will be racing to see, in terms of whether those levels continue to rise or not,’ John Kilduff, a partner at Again Capital, says.
‘They likely will, so that can be a counter-balance to the drawdown’

This post was published at Zero Hedge on Nov 22, 2017.