Crude Slides After Oil Inventories Drawdown Less Than Expected

Following last week’s chaotic Genscape build (and warning), API build, but DOE draw, and subsequent face-ripping rally, tonight’s API data signaled a lower than expected draw and sparked further chaos in prices as they jerked higher (“it’s a draw”) only to slide on missed expectations. Having reached 7-month highs during the day session, the 1.1mm barrel drawdown missed expectations of a 3.5mm draw dramatically and sparked selling pressure. However, a smaller than expected build at Cushing stalled the weakness along with notably large drawdowns in Gasoline and Distillates.

API:

Crude -1.1m (-3.5mm exp, last week -3.4mm)

Cushing +508k (+1.1m exp)

Gasoline -1.9mm (-1m exp)

Distillates -2m (-1m exp)

A Smaller overall drawdown than expected but smaller than expected build in Cushing and big draws ion Gasoline and Distillates sustained some price strength…