Following last week’s unexpected draw (following the huge storm-driven draw from the week before), traders expected a 3.25mm build this week but API reported another surprise draw (massive 7.497mm draw!) . The Colonial pipeline leak/shutdown likely had some exogenous effect as Cushing saw a large build but Gasoline drewdown as Distillates inventories rose. WTI prices are surging back to yesterday’s highs on the surprise.

 

API

  • Crude -7.497mm (+3.25mm exp)
  • Cushing +407k (+100k exp)
  • Gasoline -2.5mm (-1.4mm exp)
  • Distillates +1.4mm

For the 3rd week running (including the epic draw from the storms), Crude inventories declined… but Distillates inventories rose for the 6th week in a row…

 

While prices are expectd to remain somewhat rangebound ahead of Algiers, the surprise draw sent the mahcines ramping WTI above $44.50 (to yesterday’s highs)…

 

Charts: Bloomberg

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