DOE's 3.88mm inventory build confirms API's print and is the 8th weekly rise in the last 9 for overall crude levels. Cushing also saw a build (690k) -- the 17th week of the last 18. But the market - for now - is focused on the 4.5mm barrel draw in gasoline inventories - the biggest in a year, as the seasonals pickup. Crude jumped on the news, seemingly ignoring the fact that Cushing inventories now stand at a record high 66.9mm barrels. Also notably, US production rose for the first time in 7 weeks.
DOE:
- *CRUDE OIL INVENTORIES ROSE 3.88 MLN BARRELS, EIA SAYS
- *GASOLINE INVENTORIES FELL 4.53 MLN BARRELS, EIA SAYS
- *DISTILLATE INVENTORIES FELL 1.12 MLN BARRELS, EIA SAYS
The problem is... this is entirely seasonal...
And the reaction - surge to $38:
And this as production rises for the first time in 7 weeks...