For the 3rd week in a row, crude inventories saw a drawdown (API reports -3.56mm vs -3mm expectations) and so did Cushing (-1.3mm vs -900k exp) but crude is slipping as both Distillates and Gasoline saw unexpected builds. This is the first build in Distillates in 8 weeks.

 

API

  • Crude -3.56mm (-3mm exp)
  • Cushing -1.3mm (-900k exp)
  • Gasoline +760k (-100k exp)
  • Distillates +270k

First build in distillates in 8 weeks…

 

And the reaction was an initial slide but quick bounce back…

 

Eyes wide open for DOE data tomorrow.

 

Charts: Bloomberg

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