WTI/RBOB Jump On Gaosline Draw As US Crude Production Tumbles Most Since August

Last night's unexpected API builds kneejerked prices lower but a weaker dollar helped levitate WTI/RBOB into the DOE print. While tropical depression Cindy may have affected the data, DOE reports a small build in crude (expectations for a draw) but all eyes were on gasoline which drew 894k, well below API's build levels and expectation of no change. Production in the Lower 48 fell 100k b/d - the biggest drop since Aug 2016 (likely impacted by Cindy).

Pending Home Sales Tumble, Unchanged Since June 2013

After modest bounces in existing and new home sales (despite weakness in starts and permits and mortgage application declines), pending home sales in May tumbled 0.8% MoM and were revised even lower (-1.7%) in April. This dismal print was below all economists' expectations, missing by 4 standard deviations. This is the 3rd straight monthly drop and 2nd straight annual decline in pending home sales.