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Oil Slides Despite Inventory Draw And Crude Production Dropping For 6th Week

Confirming last night's 'surprise' API inventory drawdown, DOE reported a 2.1mm draw, following 2 weeks of significant builds. Crude production fell for the 6th week in a row to its lowest since Dec 2014. It appears some profit-taking algos are in place as a draw combined with lower production has been met with significant selling pressure in WTI.

Inventories down... (DOE 2.1mm draw is less than the 3.1mm API draw - so maybe that is why oil is sliding!!?)

 

and production down for 6th week in a row... note that this was driven by a 0.4% decline in Lower 48 production (while Alaska increased production 3.8%)

 

and the result... a selloff

Charts: Bloomberg