Following last week's Hurricane Hermine-inspired collapse in crude inventories (and API's disapponting build), DOE surprised with another (small) inventory draw (559k barrels). However, machines were confused as the week saw major builds in Gasoline (most in 2 months) and Distillates (most in 8 months). Crude production rose  (+0.4% WoW) for the first time in 4 weeks further confusing the algos. For now prices are higher post-inventories...

API

• Crude +1.4mm (+4mm exp)
• Cushing -1.12mm (-300k exp)
• Gasoline -2.4mm (-1.1mm exp)
• Distillates +5.3mm

DOE

• Crude -559k (+1.44mm exp)
• Cushing -1.245mm (-300k exp)
• Gasoline +567k (-1.1mm exp)
• Distillates +4.6mm

Last week, EIA data showed crude inventories unexpectedly fell 14.5m bbl, 2nd-biggest drop since EIA records began in 1984, after Tropical Storm Hermine battered imports; but API overnight and now DOE data has confused themn even more. The product builds are the most notable...

(Click on image to enlarge)

Crude production rose for the first time in 4 weeks.. 

(Click on image to enlarge)

And imports bounced back dramatically after the storm - biggest rise since 2015... 

(Click on image to enlarge)

As one analyst explained, "considering how wrong it was estimated last week there may be some nervousness" about the actual numbers and judging by the chaotic moves following API, the DOE follow-through wil lbe just as nerve-wracking for the machines... and the crude draw versus product build confused them to start with before the maltup... 

(Click on image to enlarge)

Prices initially kneejerked higher but the product build and increased production sparked panic-selling once $45 (API) stops had been run... 

(Click on image to enlarge)