EIA REPORT For the week ending 8/26/16
- Crude +942k (+1.5mm exp)
- Cushing -620k
- Gasoline -1.6mm (-1.25mm exp)
- Distillates +3mm (+275k exp)
- Crude +2.276mm (+1.3mm exp)
- Cushing -1.039mm
- Gasoline -691k (-1.25mm exp)
- Distillates +1.496mm (+275k exp)
Peak driving season is behind us as crude builds for the second week. Warning lights flash on Distillates building.
Initial Prints of WTI responding to EIA Data
UST Yields and Equities are crushed on WTI decline post EIA data dump.
Our biggest fear is the unlocking of overhead supply from the P-Shape distribution on the Y-AXIS. If the higher timeframe does not believe in the trend panic will generate liquidity gaps.
Aug 31, 2016 Four timeframe perspective of WTI
Deja Vu Rig Counts (Black Line) vs. WTI spot
Strong dollar woes adding to selling pressure on CAD/USD and in return lower purchasing power.
Wait, all the analyst say 2016 is the rebalancing Year! Industry insiders push back forecasts of rebalance to 2017!
Summary: Don’t look at this chart.
Bonus: Dr. Copper pending a liquidation <200 simple moving average monthly. Unprecedented. Dr. Copper saw reality now vomits.