WTI/RBOB Pop After Biggest Crude Draw Since 2016, Surprise Gasoline Draw

Following last week's surprise builds in Gasoline and Distillates, API reported a bigger than expected crude draw of 4mm barrels (whioch will be the biggest since 2016 if it holds for DOE). Furthermore, RBOB jumped after gasoline (and distillates) inventories fell (against expectations of a modest build)

 

API

  • Crude -4.158mm (-3.5mm exp) - biggest since 2016
  • Cushing -215k
  • Gasoline -1.93mm (+1mm exp)
  • Distillates -436k

Inventory draws across the board...

 

And the reaction was a kneejerk higher - after an ugly day (thanks to comments from the Saudi crown prince) for WTI (6mo lows) and RBOB (8mo lows)...

 

Notably, Russian announced production cuts right before the data hit and stated that it favbored extending the OPEC production cut deal.