Having v-shape recovery-ed intraday - as Nigeria news came and was denied - WTI Crude (Aug) was hovering around $49.90 before API data hit.Following 4 weeks of crude draws in a row, and with expectations of a 1.15mm draw, API reported a massive 5.2m barrel draw - the most in 6 months. Across the entire complex, inventories drew down more than expected, sending WTI surging back towards $50.50....MORE
- Crude -5.22m (-1.7m exp.)
- Cushing -1.311m (-50k exp.)
- Gasoline -1.47m (-300k exp.)
- Distillates -1.699m (+300k exp.)
That's a big pull but I'm a little surprised the price action isn't even more dramatic.
For the last three weeks we've seen non-confirmation from the EIA so that may be part of the reticence.
"With Oil Price Near $50, Resilient U.S. Shale Producers Eye New Chapter"