Following last week's record build in crude inventories, API reported a bigger than expected crude build this week (+4.40mm vs +2mm exp), but the huge draw in gasoline was the most notable (-3.6mm vs -1.5mm exp) as we suspect Colonial pipeline fallout affected levels. Distillates also saw the 7th consecutive draw (-4.3mm). WTI's initial reaction to the crude build was lower but the product draw sent priecs higher.
- Crude +4.40mm (+2mm exp)
- Cushing +156k (+300k exp)
- Gasoline -3.6mm (-1.5mm)
- Distillates -4.3mm
Following last week's biggest crude inventory build ever, crude built again but products saw a major drawdown...
WTI Crude futures prices are down from around $50 to $44 in the last two weeks (and down from last week's big build)... WTI was around $47 before last week's API print... Prices dipped on the crude build butthe product drawdowns sparked buying..