Oil Plunges After Surprisingly Large Inventory Build

Following last week’s ‘biggest inventrory draw in 3 months’, expctations were for a 1mm build this week, so when API reported a huge 6.2mm build. Perhaps slightly offsetting this surge is a 1.93mm draw at Cushing (after Genscape forecast a 1mm draw at Cushing this week and expectations were for a 800k draw). After a manic buying day in WTI, oil prices are plunging after hours…

API:

• Crude +6.22mm (+1mm exp.)
• Cushing -1.93mm (-800k exp.)
• Gasoline -1.58mm
• Distillates -530k

Crude stabilized from its manic ramp after NYMEX closed and then ramped into the API data before plunging on the huge build…

Charts: Bloomberg