With oil surging back above $51 on hopes of a seasonal inventory drawdown, tonight's API data showed a bigger than expected draw in crude (biggest since 2016 and gasoline. The reaction was a kneejerk higher in WTI as RBOB slipped lower, but amid a big build at Cushing (+1.3mm), WTI also slipped.
- Crude -1.8mm (-150k exp)
- Cushing +1.3mm
- Gasoline -2.6mm (-1.75mm exp)
- Distillates -2mm
Biggest draw of 2017 for crude but Cushing saw a notable build...
And the reaction was a kneejerk higher in crude as RBOB dropped.. but then crude gave it all back...
“The market’s starting to realize that we’re going to be seeing total petroleum stock draws throughout the summer, so things are starting to look a little bit better from a fundamental standpoint in the U.S,” Michael Loewen, commodities strategist at Scotiabank in Toronto, says by phone