The API report showed a surprisingly large build in crude oil along with a much larger than expected draw in distillate stocks. The API reported a large build (of about 7.3 million barrels) in crude oil stocks versus an expectation for a modest build in crude oil inventories as crude oil imports increased and refinery run rates also decreased by 1.2%. The API reported a modest draw in gasoline stocks and a larger than expected draw in distillate stocks versus an expectation for a smaller draw in inventories.
The report is mixed...bearish for crude oil, neutral for gasoline and bullish for distillate fuel. That said it is difficult to differentiate whether the gains overnight were from the inventory report (I doubt it) or from the firming euro and positives out of Europe (most likely). The market remains hostage to the evolving situation in Europe that has been unfolding once again this week as discussed above with inventory data a secondary driver. The API reported a build of about 7.3 million barrels of crude oil with a 0.4 million barrel build in Cushing and a build of about 0.4 million barrels in PADD 2 which is positive for the Brent/WTI spread. On the week gasoline stocks decreased by about 0.6 million barrels while distillate fuel stocks decreased by about 2.4 million barrels. The EIA data will hit the media airwaves at 10:30 AM EST today. Whether or not the market will react to anything that comes out of the EIA this morning will be dependent on what revolves around Europe today.