Against expectations of a 3.5mm build (following a small draw last week), API reports total crude oil inventories shockingly drew down by 3.3 million barrels. Meanwhile Cushing inventories also drew down (by 175k versus expectations for a 700k build and 523k build last week), but we note that Gasoline inventoriers rose (by 750k) for the 14th week in a row.
API Breakdown:
- Crude down 3.3 million
- Cushing: up 175,000
- Gasoline up 750,000
- Distillate down 2 million
Having rallied all day on Iran over-supply news (??), WTI extended its gains, pushing above $31 to the day's highs.
With the Cushing draw supporting the front-month against the out curve…
Charts: Bloomberg
via Zero Hedge http://ift.tt/1oqmPgG Tyler Durden