Following last week’s chaotic Genscape build (and warning), API build, but DOE draw, and subsequent face-ripping rally, tonight’s API data signaled a lower than expected draw and sparked further chaos in prices as they jerked higher (“it’s a draw”) only to slide on missed expectations. Having reached 7-month highs during the day session, the 1.1mm barrel drawdown missed expectations of a 3.5mm draw dramatically and sparked selling pressure. However, a smaller than expected build at Cushing stalled the weakness along with notably large drawdowns in Gasoline and Distillates.
API:
- Crude -1.1m (-3.5mm exp, last week -3.4mm)
- Cushing +508k (+1.1m exp)
- Gasoline -1.9mm (-1m exp)
- Distillates -2m (-1m exp)
A Smaller overall drawdown than expected but smaller than expected build in Cushing and big draws ion Gasoline and Distillates sustained some price strength…
Which, after last week’s chaos…
Kneejerked crude higher before it dropped on the miss…
Charts: Bloomberg
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