Overnight exuberance sparked by lower than expected Cushing build reported by API is fading on the heels of June OPEC headlines of no production limits (and rising Saudi production) heading into DOE inventory data. Crude inventories printed a significantly higher than expected 2.78mm build but Cushing saw a smaller than expected build of 243k. Gasoline surprised with a 536k build (API 1.17m draw) and Distillates saw a smaller than API build of 1.26m barrels.
The biggest news was the biggest plunge in US production since July 2015, and yet inventories still rose suggesting that fundamentally this is and has been as much a demand story as one of supply (even as OPEC countries are happy to offset declining US output).
Crude 1.265m ( 750k exp) Cushing 382k ( 1.3m exp.. Genscape 821k) Gasoline -1.17m Distillates -2.6m
This post was published at Zero Hedge on 05/04/2016.