DOE reported a bigger than expected crude build (+2.432mm vs +2mm exp) but smaller than API's reported 4.4mm build, but DOE reports a considerably smaller drawdown in the products side (gasoline and distillates). Cushing saw a small build but US crude production soared 2% on the week - the most since May 2015.

API

• Crude +4.40mm (+2mm exp)
• Cushing +156k (+300k exp)
• Gasoline -2,841k vs est. -1,500k
• Distillates -4.3mm

DOE

• Crude +2.432mm (+2mm exp)
• Cushing +28k (+300k exp)
• Gasoline -2.841mm (-1.5mm)
• Distillates -1.948mm

Other observations:

• PADD 3 crude -1,028k
• PADD 1B gasoline -1,466k
• PADD 1 Distillates -920k
• Refinery utilization +1.9 ppt vs est. +0.5 ppt
• Refinery crude inputs +369k b/d
• Crude imports -1,553k b/d to 7,442k b/d vs 8,995k, -17%

Imports by region:

• PADD1: 621k vs 1,164k
• PADD2: 2591k vs 2538k
• PADD3: 2911k vs 3814k, -24%
• PADD4: 383k vs 344k
• PADD5: 937k vs 1135k

Imports into U.S. by country in b/d:

• Canada imports 3206k vs 3282k
• Saudi Arabia imports 1295k vs 1170k
• Venezuela imports 533k vs 835k
• Mexico imports 515k vs 688k
• Colombia imports 33k vs 602k, lowest on record, since June 2010
• Ecuador imports 278k vs 156k
• Nigeria imports 113k vs 345k
• Kuwait imports 97k vs 85k
• Iraq imports 427k vs 645k
• Angola imports 64k vs 30k

7th weekly drawdown in distillates inventories as crude built for a second week (note that DOE product drawdowns were smaller than the API reported ones)

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Gasoline stocks fell 2.8mmb/d to 221mm, back to only 7.7mm higher compared to 2015 and 16.6mm vs the 10 year average according to Reuters.

The drop in imports from 9.0mmb/d to 7.4mmb/d confirms that the surge in crude imports in the October 28 weeks was due to a surge in tanker arrivals.

But the big news a massive surge in US Crude production - the most since May 2015 to its highest in 6 months...

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And the reaction is a modest slide for now...

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