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Last night's API report had a considerably bearish tilt, yielded a solid build of 3.8 million barrels to crude stocks, while Cushing stocks edged up also. It was the gasoline build of 6.6 million barrels, however, which stole the (bearish) show.

This huge build came amid a drop in refinery utilization, and although demand was likely dinged by inclement weather, especially in the Northeast  (h/t winter storm Jonas), weaker gasoline demand of late is waving a red flag about the state of the broader economy.

It continues to be rough sailing for the oil majors, as Exxon swiftly followed BP's quarterly earnings with an equally challenging set of results. Exxon posted its weakest annual results in over a decade. Although in contrast to BP it was able to book positive annual earnings, the $16.2 billion seen was a halving of last year's level. Chevron said it will cut spending by $9 billion this year, while Exxon is slashing spending by 25% or $7.9 billion.

As capital expenditures are cut, oil majors are instead looking to weather the storm and maintain their dividends by borrowing mo' money. BP's net debt increased by almost $5 billion last year to $27.2 billion, while Chevron's total debt increased by nearly 40% last year. Shell hasn't cut its dividend since World War II, but its will is going to be severely tested, especially after S&P cut its credit rating on Monday to its lowest ever.

From one troubled area to another, we take a look at Nigeria. Africa's top oil producer is View Full Article