Following last week's epic crude inventory drawdown, the market expected a post-hurricane build of 4mm barrels, but API reported a mere 1.4mm build. However, a massive build in Distillates inventories (+5.3mm - biggest in 8 months) confused the machines. WTI had fallen back to a $44 handle - erasing all the inventory-draw-spike gains - before API data hit; but then spiked to last week's API levels, tumbled, then spiked again...
API
- Crude +1.4mm (+4mm exp)
- Cushing -1.12mm (-300k exp)
- Gasoline -2.4mm (-1.1mm exp)
- Distillates +5.3mm
After last week's (storm-driven) massive inventory draw, expectations were for a build, but the build disappointed. However Distillates saw the biggest build in 8 months...
Notably, WTI had fallen back and erased all of the post-inventory bounce. As Price Futures' Phil Flynn noted, the market "is worried about a post-hurricane rebound in supply."
But price action was chaotic with the big distillates build confusing algos...
Charts: Bloomberg
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