Oil Bounces On Unexpected Cushing Inventory Draw

Following last week’s surprise build in overall crude inventories (after 9 weeks of draws), API reported a smaller than expected drawdown (-1.34mm vs -2mm exp). However, oil prices are extending late-day gains as Cushing reported a major 1.3mm draw (against expectations of a 1mm barrel build). Gasoline drew down but Distillates built.

API

• Crude -1.34mm (-2mm exp)
• Cushing -1.3mm (+1mm exp)…Genscape reported a small (<100k) draw for Cushing.
• Gasoline -450k (-1mm exp)
• Distillates+593k

10th weekly draw of last 11 in crude but it was the Cushing draw that was the biggest driver…

And crude, having faded all day, rallied into the NYMEX close and NYSE close and is extending gains on the API data…