Oil Slides After Unexpected Gasoline Inventory Build

Following last week’s surprise distillates build (and lower than expected crude draw) API reported inventories largely in line with expectations (-2.3mm vs -2mm exp. This nevertheless managed to pump and dump crude futures before drifting slightly lower as Gasoline showed a bigger than expected build (+800k vs -500k exp.).

API

• Crude -2.3mm (-2mm exp)
• Cushing -84k (-100k exp)
• Gasoline +805k (-500k exp)
• Distillates -484k

This is the 9th weekly daw in crude in a row… and Gasoline showed a major build vs expected draw…

The reaction was chaos in crude with stops ripped lower and higher before drifting lower..

Charts: Bloomberg