Oil Spikes After Biggest Inventory Draw In 13 Months

After six straight weeks of drawdowns and against expectations of a 2.5mm barrel build, API reported a massive 6.736mm barrel drawdown – the biggest since June 2015. Distillates and Gasoline also saw major draws.  The result – unsurprisngly – is a surge in crude, extending the day’s gains, even though Cushing saw a modest 80k build.

API

• Crude -6.736mm (-2.5mm exp)
• Cushing +80k
• Gasoline -3.603mm
• Distillates -2.305mm

This is the biggest drawdown since June 2015 and 2nd biggest since July 2014…

Of course this is largely expected from a seasonal perspective…

And as a result, crude is spiking…