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Bigger Than Expected Inventory Build & Record Production Sparks WTI Slump To 6-Week Low

An initial kneejerk higher after last night's surprise API inventory draw is long forgotten as USD strength (and no signs of global growth returning) has dragged WTI Crude back to $48.01 - its lowest in almost 5 weeks... As traders awaited today's DOE inventory/production report, it appears expectations were that there will be a 4.75 million barrel build, notably divergent from API's print... and sure enough DOE printed 4.512 million barrels - the ninth weekly build in a row. That immediately sent WTI tumbling beloiw $47.50 on heavy volume. Storage concerns grow as Cushing rose a greater-than-expected 2.32mm barrels and production hit a new record high at 9.366 mm b/d.

 

From the kneejerk jump after the inventory draw... finding temporary support at $48.00 before today's DOE report...

 

Then the 9th build in a row hit...

 

and dumped WTI...

 

Its lowest in 6 weeks...

 

Charts: Bloomberg