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Crude Oil Inventories Surge For 7th Week In A Row To Record Highs Amid Record Production

Oil prices dumped (last night's major 8.9 million barrel inventory build from API), pumped (the Saudi minister claiming "demand is growing" - which just seems like total fiction given economic backdrops and China's VLCC count plunge), and then this morning, dumped setting the scene for this morning's EIA inventory data. Against expectations of an 8 million barrel build, crude inventories saw a 8.43 million barrel build (5 times higher than the 5 year average). Record levels of production and record total inventrory sent WTI plunging out of the gate but it is stabilizing for now...

 

US Crude oil inventories

 

US Oil Production hit a new record high... (despite the declining rig count - perhaps finally putting a nail in that meme)...

 

And Total Oil Inventory hit a new record high - massively higher than seasonal norms...

 

The reaction - algos gone wild - dump and pump

 

and the close-up reaction...

 

Charts: Bloomberg