WTI is hovering unchanged from last night's surprise crude and gasoline builds reported by API as Saudi Arabia’s energy minister said the world’s biggest oil exporter sees no need to take immediate action in the crude market, signaling a cautious response to the U.S. decision to tighten sanctions on Iran.

“We will see what the customers want,” Al-Falih told reporters. “I think our intent is to remain within our voluntary production limit, but at the same time to be responsive to our customers, especially those who have been under waivers, and those waivers have been withdrawn.”

“We will not leave our customers scrambling,” Al-Falih said.

But for now, all eyes are on DOE's official inventory data for any signs of demand growth (not just supply curtailment):

“The fundamental dynamic has been one of gasoline supplies being under pressure," says Tyler Richey, co-editor and commodities analyst at Sevens Report Research. “That’s going to be supportive for prices until it stops."

API

• Crude +6.86mm (+500k exp)

• Cushing -389k

• Gasoline +2.163mm (-1.82mm exp) - first build in 10 weeks

• Distillates -865k (-712k exp)

DOE

• Crude +5.48mm (+500k exp)

• Cushing +463k

• Gasoline -2.13mm (-1.82mm exp)

• Distillates -662k (-712k exp)

WTI Crude stocks were expected to rise for the 4th week in the last 5 (rebounding from last week's surprise draw) and did so, blowing out expectations with a 5.48mm build. Gasoline inventories fell for the 10th week in a row (ignoring API's build)...

As Bloomberg notes, U.S. refiners are taking longer than historically to come back from the end-of-winter maintenance season.

US crude stockpiles are near their highest since Oct 2017...

U.S. gasoline inventories have declined for nine consecutive weeks, dropping to the lowest level for this time of the year since 2015.

US Crude production rose very modestly in the prior week (tracking the lagged rig count decline)...

WTI roundtripped from overnight weakness after API data as Saudi comments prompted gains and algos were confused at the crude build, gasoline draw...