Following last week's surprise draw (from the DOE data), API reported a huge 5.14mm draw (against expectations of a 2mm barrel draw) - the biggest since Dec 2015. Bear in mind that last week API reported a large build only to se a major draw in DOE data so perhaps this is catch down from the Canada interruption. Cushing saw its first draw in 4 weeks but Gasoline inventories rose dramatically (+3.06mm vs -1.5mm exp). Crude prices are exuberantly looking to run last week's high stops on the news, breaking above $49 again.
- Crude -5.137mm (-2mm exp)
- Cushing -189k (-400k exp)
- Gasoline +3.06mm (-1.5mm)
- Distillates -2.92mm (-750k exp)
This is the biggest inventory draw since Dec 18th...
The reaction, understandably, a surge in oil prices - breaking above $49...
Bear in mind, seasonally, the trend is for a draw in May. In fact May of 2015 saw one of the biggest draws of all time at -16.4 million. How did 2015 end?