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WTI Jumps Above $48 After API Inventory Report Shows Huge Crude Draw

The recent trend of inventory draws (in crude and products) has supported higher Brent and WTI prices (the latter testing $48 today) despite surging production. API reported more of the same with a much larger than expected draw (-10.2mm vs -3mm exp), sending WTI above $48. All was not perfect in the report however as gasoline saw an unexpected build.

 

API

  • Crude -10.2mm (-3mm exp) - biggest draw since Sept 2016
  • Cushing  -2.568mm (-1mm exp)
  • Gasoline  +1.9mm (-1.8mm exp)
  • Distillates -111k

Gasoline surprised with an unexpected build in inventories but the massive crude draw (largest since Sept 2016) and a reduction in stocks at Cushing helped send crude proices higher...

 

WTI traded around $48 into the API print - having ripped higher the last two days after Saudi 'whatever it takes' comments - and blew through $48 on the API print...

“They have chased the bears back into the woods. Sentiment in the market is mildly bullish,” James Williams, an economist at London, Arkansas-based energy-research firm WTRG Economics,