Oil prices briefly spiked after last night's API-reported big crude draw, but that reverted back lower fast. Overnight has seen a small roller-coaster with prices slipping during the US session and then a series of bad news data point in the US sparking a 'good news for Fed cuts' response in oil prices, holding just above green on the day.
The question is - was API's data fluke...
API
Crude -9.16mm - biggest draw since mid-Jan 2024
Cushing +404k
Gasoline +2.47mm
Distillates -740k
DOE
Crude -12.16mm - biggest draw since Jul 2023
Cushing +345k
Gasoline -2.21mm
Distillates -1.54mm
Nope. The official data confirms the huge crude draw last week (which we suspect was pre-emptive draws ahead of 'Beryl'
Source: Bloomberg
Adjusted for the 398k barrel addition to SPR, the 11.579mm barrtel draw was the largest since the last week of July last year...
Source: Bloomberg
Oil prices spiked on the big crude draw...
Source: Bloomberg
Even if crude prices ease a little, pump-prices are set to rise further...
Source: Bloomberg
Pouring more salt in President Biden's polling wounds.
