Oil Slides After Biggest Inventory Build In 6 Weeks

Having risen for the 8th straight day - the longest stretch in 7 years - oil prices kneejerked lower after API reported a surprisingly large 4.8mm inventory build (1.5mm draw expected) - the largest in 6 weeks. Gasoline and Distillates saw draws but Cushing built for the 4th week of the last 5.

 

API

  • Crude +4.2mm (-1.5mm exp) - biggest in 6 weeks
  • Cushing +528k (+500k exp) - 4th build in last 5 weeks
  • Gasoline -2.8mm (+1mm exp)
  • Distillates -1.7mm (+1mm exp)

Following last week's surprise build, API reported another surprise build this week in overall crude inventories...

 

And the reaction was a kneejerk lower holding below $54...

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