Details of the EIA weekly crude oil inventory report for the week ending June 5, 2015:
- Largest draw in 11 months
- The (pre-API) consensus was -1.27m barrels
- Gasoline -2.9m barrels vs -0.55m expected
- Distillates +0.86m vs +0.84m exp
- Cushing -1.0m vs -0.85m exp
Bullish numbers. API predicted a big drawdown but the market might have been a bit skeptical because they've missed the past few numbers.
Still, from time to time the market fades inventory data and the oil market is struggling to hold onto gains.
Update: crude is at US session lows at $61.08 after the release. The market is increasingly focused on the production side of this report. It's not carried in the main newswire headlines but it's in the tables of the report. This week, it showed a 0.3% rise in US production to 9.61 million barrels. That's up 13.6% y/y.
We're going to keep a closer eye on that metric in the future.
