Following API's smaller than expected draw overnight, DOE data showed an unexpedted 1.31m barrel build (3.5m draw expectations). This was offset by considerably bigger than expected draws in Gasoline and Distillates and Cushing oinventories rose less than expected. Crude production also fell once again, to its lowest since Sept 2014. The initial kneejerk was a mini-flash-crash in crude prices.. but that was rapidly bid back to unch…
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)
DOE
- Crude +1.31m (-3.5mm exp, last week -3.4mm)
- Cushing +460k (+1.1m exp)
- Gasoline -2.5mm (-1m exp)
- Distillates -3.17m (-1m exp)
Production dropped for the 17th week in a row to its lowest since Sept 2014…
And the reaction was an immediate flash crash in crude…but BTFD'ers could not resist…
Charts: Bloomberg
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