Yesterday's move on the API report, combined with today's on the EIA numbers is noteworthy because it wasn't just short covering, there are quite a few folks who want to own oil.
We don't but we also don't fight the crowd. Instead we'll be looking for a reversal next week.
From ZeroHedge:
API's reported huge 3.6mm drawdown in total crude inventories (against expectations of a 2.33mm build) was just the catalyst to send crude prices soaring overnight and DOE just confirmed it with a massive 5.88mm draw - the largest in over 6 months. However, initial exuberance was tempered as Cushing saw a 2.045mm build - its 7th week in a row. And finally, crude production rose for the second week in a row.
Huge drawdown overall...
But Cushing continues to get more full...
Production rose for the 2nd week. Demand is down 0.8% YoY.
For now Crude is holding gains...
but is having trouble breaking above FOMC highs...
Charts: Bloomberg
