Against expectations of a 3.5mm build (following a small draw last week), API reports total crude oil inventories shockingly drew down by 3.3 million barrels. Meanwhile Cushing inventories also drew down (by 175k versus expectations for a 700k build and 523k build last week), but we note tha tGasoline inventoriers rose (by 750k) for the 14th week in a row.

API Breakdown:

Having rallied all day on Iran over-supply news (??), WTI extended its gains, pushing above $31 to the day’s highs.

With the Cushing draw supporting the front-month against the out curve…

Charts: Bloomberg