WTI Crude Spikes After Major Crude Inventory Draw Trumps Production Increase

Oil held gains overnight following API’s surprise crude inventory draw, DOE data surprised even more with a massive 5.247mm draw (2.1mm build exp). Cushing saw the biggest draw in 6 months but we note that Gasoline inventories rose 2.469mm barrels – the biggest build since Feb. Production rose very modestly but hovers around the 8.5mm b/d level.

API

Crude -3.8mm (+2.1mm exp)

Cushing -1.96mm (-1.4mm exp)

Gasoline +929k

Distillates -2.3mm

DOE

Crude -5.247mm (+2.1mm exp)

Cushing -1.635mm (-1.4mm exp) – biggest in 6 months

Gasoline +2.469mm – biggest in 8 months

Distillates -1.24mm

Following last week’s big build, DOE reports an even bigger draw than API. However the huge swings in Cushing (draw) and Gasoline (build) are notable.

Production rose on the week but is stable around the 8.5mm b/d level still…

Earlier comments from Saudi Arabian energy minister Khalid Al-Falih saying that many nations are willing to join OPEC’s planned production cut helped support the overnight gains from API data, and the DOE draw sent WTI soaring towards $52…