Crude Pares Losses after EIA Report shows a surprise build

The EIA crude inventory report delivered another surprising build of 2.21 million barrels last week.  Expectations were for a draw of 1 million barrels, with a wide range of estimates of a 3.7 million draw to a 3.0 million build.  Oil was already sharply lower going into the data and eventually extended losses.  Cushing accounted for 2.096 million barrels of the total build, confirming the API’s rise which saw the strongest gains since February.  The rise in Cushing is mainly being attributed to the Midwest flooding that disrupted many pipelines and refineries.

West Texas Intermediate Crude is tentatively finding support around the $52.00 a barrel level. The Canadian dollar remains little changed to the greenback on the day.