With OPEC/NOPEC headlines the biggest drivers in recent days, the first inventory build in six weeks (according to API) sparked notable weakness in WTI after hours. The 2.7mm build (bigger than the 2mm expectation) is the largest since April. Gasoline stocks also rose (against expectations of a draw) as Cushing (and Distillates) saw a significant drawdown which we suspect are hurricane-affected moves.
- Crude +2.7mm (+2mm exp)
- Cushing -1.352mm (+100k exp)
- Gasoline +688k (-900k exp)
- Distillates -4.517mm
For the first time in six weeks, crude inventories rose last week by the most in 6 months. We also note a massive drawdown in Distillates (most since Oct 2014) due to the Hurricane…
The reaction was an immediate kneejerk to $50 and the lows of the day…