WTI Slides After Unexpected Large Crude Build

Having rallied from last week’s unexpected Cushing draw (seemingly ignorant of the crude build), crude prices faded heading into tonight’s API data. With expectations of draws across the board, crude prices tumbled after API reported a surprise build (the 3rd week in a row) of 2.09mm (-1.5mm exp.) – the biggest build in 3 months. Cushing also saw a significant build (while product inventories dropped).

API

• Crude +2.09mm (-1.5mm exp) – biggest in 3 months
• Cushing +1.2mm (-1.3mm exp) – biggest in 3 months
• Gasoline -3.9mm (-1.3mm exp)
• Distillates -1.5mm

This is the 3rd weekly build in a row…

The reaction in crude is a leg lower with Sept testing $42.50…

Charts: Bloomberg