WTI/RBOB Extend Losses After Huge Crude Build

By Tyler Durden

WTI/RBOB prices tumbled today on demand outlook cuts (and late comments from Brazil and Russia with regard OPEC cuts) ahead of tonight’s API report which is expected to show crude and gasoline draws. However, WTI/RBOB prices extended their losses as Crude (biggest in 9 months) and Gasoline saw significant builds.

API

Crude+6.513mm (-2.4mm exp) – biggest build in 9 months
Cushing -1.803mm – biggets draw in 4 months
Gasoline +2.399mm (-1.5mm exp) – biggest build in 3 months
Distillates -2.527

Last week’s surprise Crude build appear to be a trend…

Following OPEC’s forecast of huge oil demand, IEA poured cold water all over that and cut its demand outlook, then Brazil and Russia seem to back away from extending OPEC production cuts…

Petrobras CEO Pedro Parente says his first responsibility is to investors:

“I can’t play games with the size of the debt I have,” Parente says when asked if Brazil’s state-run producer would ever consider such an action.

“How would I defend that to my investors?”

Says Brazil’s government doesn’t have the power to impose production limits on companies operating in the country, including Petrobras.

“I have a huge debt to pay, I have to produce oil, I have to make money”

and Bloomberg reports, OPEC …read more

Source:: ZeroHedge