DOE’s 3.88mm inventory build confirms API’s print and is the 8th weekly rise in the last 9 for overall crude levels. Cushing also saw a build (690k) — the 17th week of the last 18. But the market – for now – is focused on the 4.5mm barrel draw in gasoline inventories – the biggest in a year, as the seasonals pickup. Crude jumped on the news, seemingly ignoring the fact that Cushing inventories now stand at a record high 66.9mm barrels. Also notably, US production rose for the first time in 7 weeks.

DOE:

  • *CRUDE OIL INVENTORIES ROSE 3.88 MLN BARRELS, EIA SAYS
  • *GASOLINE INVENTORIES FELL 4.53 MLN BARRELS, EIA SAYS
  • *DISTILLATE INVENTORIES FELL 1.12 MLN BARRELS, EIA SAYS
  • The problem is… this is entirely seasonal…

    Sending the Gasolince Crack soaring nearly $1…

    And the reaction – surge to $38:

    And this as production rises for the first time in 7 weeks…

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