There’s been a clear market reaction in the energy complex to the release of the weekly crude oil inventories with both Oil and Oil.WTI surging up to their highest levels of the day. The report came in as follows:
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Crude Oil Inventories: -1.1M vs -1.8M exp. API: +4.7M
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Gasoline: +2.5M vs +2.0M exp
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Distillates: +1.5M vs -0.4M exp
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Cushing: -0.3M vs -3.4M exp
While many of these components could be described as mixed, the drawdown in the headline is by far and away the most positive for the price of Oil. Even though the drawdown is slightly lower than the consensus forecast, it is significantly below the large build seen in last night’s APIs and this has likely caused the strong move higher in Oil.
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Last night’s API release caused a clear move lower in Oil but the market has just made a strong push higher - and above the level seen before the API - after a drawdown in the more widely followed EIA inventories. Source: xStation
