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Production Cut Sparks Crude Rally As Inventory Rise Reaches Longest Streak On Record

Following last night's pump'n'dump after API inventories exceeded expectations (5.2mm vs 4.2mm exp.), WTI crude prices have dropped to almost a $46 handle and recovered as chatter of "no deal" from Switzerland picks up. DOE reports a 4.766mm barrel build, greater than expected, for the 12th week in a row - the longest streak since records began in 1982. Crude prices are however surging as production dropped wekk-over-week for only the 2nd time this year...

 

Inventories hit a new record high and are up 12 weeks in a row - a 33 year record high...

 

But crude production fell WoW for only the 2nd time this year...

 

The end result.. a rally for now...

 

Charts: Bloomberg