Following last night's surprise inventory build (as reported by API), as one trader noted, "inventory declines are expected this time of yr and more or less expected, we need to see inventory draws accelerating," and DOE didn't disappoint reporting a 2.8 million barrel draw (against expectations of a 2 million barrel draw). Inventories remains massively high though and Crude Production soared 3.28% - the biggest rise since Oct 2013. Crude prices initially ripped on the inventory news but are fading.
4th week in a row of inventory draws
For some context as to what this inventory change means...
But production exploded by the most in 19 months... Lower 48 States increased production at an average of 209,000 barrels per day
Crude prices ramped into the data after legging down all morning... spiked on the news but perhaps the machines have not seen the production data yet.