Crude Pops After Smaller-Than-Expected API Inventory Build, Cushing Capacity Concerns Remain

After last week's record inventory build, it is perhaps no surprise that API reports a 2.6mm build (below expectations for a mere 3.5mm bbl build). If this is confirmed by DOE data tomorrow, this will be the 14th week in a row - the longest streak on record. More importantly, the Cushing inventory build rose more than last week (+1.3mm vs +1.2mm) -  this is the 18th week in a row of inventory builds at Cushing (which is now over 90% full - 70.8mm bbl capacity).

Crude jumped modestly on this build...

But Cushing Capacity Constraints remain a concern...

Charts: Bloomberg