Crude Slides On Surprise Build As Oil Volatility Plunges To 8-Month Lows

Oil prices jumped notably intraday (near three-month highs at $61 for WTI) as US manufacturing data printed better than expected, building on post-trade-deal optimism.

“The conditions for a rising oil price appear favorable at present,” said Eugen Weinberg, head of commodities research at Commerzbank AG in Frankfurt.

But that could all change after inventory data

API

Crude +4.7mm (-1.5mm exp)
Cushing -0.3mm
Gasoline +5.6mm
Distillates +3.7mm

Crude inventories rose unexpectedly in the prior week but were expected to draw again this week. However a 4.7mm build was a big surprise relative to the 1.5mm draw expected…