Following last night's across the board build in inventories from API, DOE reported a surprising 750k drawdown (much less than the 3.2mm build expected). However, across the rest of the complex - inventories rose: Cushing +523 build (13th week in a row), Gasoline +1.26mm build, and Distillates +1.28mm build (first in 4 weeks). Having tumbled early on from Yellen's undovishness, crude spiked on the headline draw (back above $29) but is struggling to hold gains.
From API:
- Crude +2.4mm
- Cushing +715k
- Gasoline +3.1mm
From DoE:
- Crude -754k
- Cushing +523k
- Gasoline +1.26mm
- Distillates +1.28mm
The minor crude inventory draw is considerably outweighed by the build across products and storage concerns (echoing BP's earlier warnings)...
US Crude production dropped 0.3% week-over-week but remains well above 9mm bbl/day.
Following Yellen's disappointment this morning, Crude had dumped, then it pumped on th eheadline DOE data only to wake up to the builds in products and Cushing...
Charts: Bloomberg