Well, there it is: confirmation of yesterday’s API number, which showed a surprise draw in US stockpiles.
As a reminder, the unexpectedly bullish print came on the heels of a rollercoaster day that underscored what we might call “Saudi headline risk.” In a nutshell:
That was the setup for the API numbers, which came in as follows, for those who missed it:
- Crude inventories fell 531k bbl last week
- Cushing +2.06m
- Gasoline -3.88m
- Distillates -4.07m
The crude draw came against estimates for a DOE build of 3,133K/bbl. Moments ago, the API data was confirmed as follows:
- EIA: Crude -237k Bbl, Median Est. +3,133k Bbl
Cushing crude +2,130k
- PADD 3 crude -2,409k
- Gasoline -3,055k vs est. -2,000k
- PADD 1B gasoline -849k
- Distillates -4,229k vs est. -1,500k
- PADD 1 Distillates -3,097k
- Refinery utilization -0.8 ppt vs est. +0.5 ppt
- Refinery crude inputs -20k b/d
- Crude imports -745k b/d
- Crude production +21k b/d
Apparently it’s a “sell the news” kind of day. Either that, or the reality of near-record stockpiles and soaring production has set in permanently after last week’s rout.
Whatever the case, here’s the result:
Of course the algos will “mean revert” this immediately, so who knows how it will pan out.