Following last night's huge drawdown in inventories, according to API, The DOE data shows a huge 5.45mm bbl draw (against expectations of a 3.7mm bbl draw). This is the biggest draw since early June and 2nd biggest draw in 13 months. Production data showed a 3rd weekly drop in a row (4th of last 5 weeks) but of lesser magnitude. WTI crude's reaction was an initial surge to test API-spike highs but then weakness ensued as Fed's Dudley started speaking...
Crude inventory tumbled...
[3]
And Production continues to slow... though only modestly
[4]
The reaction for now...Surge on oil fuindamentals and purge on Dudley...
[5]
Charts: Bloomberg
