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Crude Crashes To $35 Handle After Massive, Surprise Inventory Build & Production Rise

Following last night's surprising 2.3mm barrel inventory build, reported by API, DOE reports a massive 4.8mm build against expectations of a 1.5mm barrel draw and way above the highest estimate of a 2.6mm draw. This is the biggets build in 2 months at a seasonally 'weak' time of year. Crude ramped overnight to regain the losses from the API dump, but dropped back to lows (under $37) before the DOE data, then crashed below $36. Furthermore, production was up in the lower 48.

Biggest build in 2 months...

 

And production rose...

 

Crude prices collapsed lower...

 

Charts: Bloomberg