WTI Crude Spikes Above $50 On Massive Inventory Draw

Having v-shape recovery-ed intraday - as Nigeria news came and was denied - WTI Crude (Aug) was hovering around $49.90 before API data hit. Following 4 weeks of crude draws in a row, and with expectations of a 1.7mm draw, API reported another - this time massive - 5.2m barrel draw - the most in 6 months. Across the entire complex, inventories drew down more than expected, sending WTI surging back towards $50.50.

API

• Crude -5.22m (-1.7m exp.)
• Cushing -1.311m (-50k exp.)
• Gasoline -1.47m (-300k exp.)
• Distillates -1.699m (+300k exp.)

And the reaction in crude is clear as August WTI has surged from $46.50 to $50.50 in 3 days...

Charts: Bloomberg