That said the API did report a small build in Cushing that is likely the result of oil that was earmarked for the temporarily shut down Coffeyville refinery. Overall the API report (see below for more details) was biased to the bullish side but as we have seen many time in the past the API data is often inconsistent with the more widely followed EIA data that will be released later this morning. The market reaction this morning to the API data is muted as the industry awaits the EIA data release.
Yesterday’s selling in the oil market was mostly prompted by another strong sell-off in the global equity markets as the market moved into another risk off trading session. Uncertainly over the all of the evolving geopolitical events around the world have been creating a high degree of concern in the financial markets resulting in global equities giving back a modest portion of their year to make gains over the last several weeks.