WTI prices have roller-coastered (generally lower) since last week's inventory(lower)/production(higher) data back to unchanged but as API printed a massive 8.133mm crude drawdown (vs 2.45mm exp), the biggest since Sept 2016 if DOE confirms, WTI prices quickly jumped higher. Gasoline also saw a bigger than expected draw while Distillates built.
API:
Authored by Richard Rosso via RealInvestmentAdvice.com,
“The emergence of money manager capitalism means that the financing of the capital development of the economy has taken a back seat to the quest for short-run total returns.” – Circa 1992.
Wall Street has forgotten the great financial crisis.
After building out Merrill's mortgage trading floor basically from scratch, then moving to the buyside at Pimco, several weeks ago Harley Bassman, more familiar to many traders as the "Convexity Maven" - a legend in the realm of derivatives (he helped design the MOVE Index, better known as the VIX for government bonds) - decided to retire (roughly one year after his shocking suggestion that the Fed should devalue the dollar by buying gold).
'Dip-buyers' stepped up bravely to rescue stock markets after Trump Jr.'s email threatened to unravel the hype of Trump tax cuts... but it seems McConnell's sumemr-school for Senators has saved the day as hope is back that healthcare (then tax cuts) will emerge... and the S&P reached unchanged...
The question is - now that the machines accomplished their machines - what happenes next?
Because the dollar is not buying it...
Mark Yusko, CIO of Morgan Creek Capital Management, is unafraid to say it how it is. Recall in May, his keynote address warned: