Following last week’s huge build reported by DOE, crude inventories reported by API tonight dropped 3.6 million barrels (drastically different from the 2.3mm build expected). WTI is rallying on the news, despite a 1.5 million barrel build at Cushing (up notably from last week’s 847k) – the 7th weekly build in a row.

Total Inventories saw a drawdown…

But Cushing saw the 7th weekly build in a row…

The reaction was modest as algos came to terms with the ‘build’ at Cushing, the ‘draw’ overall, and the strength of the Brent ‘arb’

Charts: Bloomberg