With oil traders playing headline-hockey ahead of tomorrow's OPEC meeting, tonight's API data may not be quite as consequential as usual. With sizable draws expected overall and at Cushing, API reported a shocking 2.35mm build (2.5mm draw expected) which, despite a bigger than expected 1.1mm draw at Cushing (twice the expected) sent WTI Crude prices tumbling. Gasoline and Distillates both saw draws with the latter's 7th consecutive week – the longest streak since oct 2015.
API
- Crude +2.35mm (-2.5mm exp)
- Cushing -1.1mm (-500k exp)
- Gasoline -1.48mm
- Distillates -1.15mm
Following last week's bigger than expected draw in crude, this week's build was a big surprise (2nd biggest build in 2 months) and we see 7th consecutive draw in distillates,
Notably, as @EnergyBasis noted, same week last year #API reported #Crude build +1.8 mbbls while #DOE reported draw of -1.948 mbbl
The reaction is clear, the pre-NYMEX close ramp was erased and WTI pushed back to a $48 handle…
Charts: Bloomberg
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