Following last night's 5.2 million barrel inventory draw reported by API, crude prices surged once again (bouncing off levels before the first inventory draw at the end of April). Consensus appears confused since Bloomberg median estimates were for a 1.75mm draw while survey respondents expected a 3.82 million barrel draw this morning. DOE data showed a disappointly lower than API, 2.67 million barrel draw - which initially sent crude prices tumbling... machines bid them back, and now they are plunging again. Production dropped 1.2% overall - its biggest weekly drop since July 2014.
3rd weekly inventory draw in a row...
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And production plunged by the most in 10 months...
[4]
Which sent crude falling - then soaring - then dumping...
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Retracing gains post API - as it appears the market was disappointed that the DOE draw was not as big as API had predicted
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Charts: Bloomberg
