After two weeks of huge builds at Cushing (most since 2008), expectations were for a 3rd big weekly build at Cushing (and draw in overall crude). Oil prices kneejerked lower as API reported a major build in overall crude inventories (4.68mm build vs expectations of a 1.5mm draw). While Cushing saw a smaller than expected build, Gasoline inventories also soared most since January.

API

• Crude +4.68mm (-1.5mm exp)
• Cushing +632k (+3.2mm exp)
• Gasoline +3.905mm - biggest since Jan
• Distillates +233k

Biggest gasoline build in 11 months and a big surprise crude build...

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Cushing inventories are soaring... 

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The reaction in crude was an immediate kneejerk lower as oil was "Gartman"'d again... 

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“There’s obvious optimism from the bulls on OPEC’s ability to come to an agreement with non-OPEC,” Paul Crovo, Philadelphia-based oil, equities analyst at PNC Capital, says by phone. “At the same time, there’s a reasonable level of trepidation” regarding supply response from U.S. shale