Oil Extends Losses After Surprisingly Large Cushing Build

With all eyes now focused on Gasoline inventories, API’s report surprised with a modest draw (-420k) but a considerablyless than expected draw in Crude (-827k vs -2mm exp) and major build at Cushing (+1.4mm vs 750k exp). Crude had faded into the close after testing stops at $43, and extended losses after the API data hit.

API

• Crude -827k (-2mm exp)
• Cushing +1.4mm (+750k exp)
• Gasoline -420k
• Distillates +292k

Overall crude extended its series of drawdowns to 10 weeks but Cushing’s huge build is ringing alarm bells…

And the reaction, having tested stops above $43 before API data, WTI tumbled back toweards the lows of the day after API reported…

Charts: Bloomberg