Weekly oil data from the EIA:
- Prior was -2.676m
- The market is probably looking for something around -2.7m to -3.1m barrels
- The last-minute BBG estimate switched to -2.9m from -1.67m
- Cushing inventories -1.87m vs -0.67m exp
- Gasoline inventories +0.68m vs -0.38m exp
- Distillates +1.8m vs +0.58m exp
- Production +0.2% to 9.604m vs 9.589m prior
Oil prices are down despite the large draw. For one, there was a lot of chatter of a larger draw so expectations might have been higher than what we were hearing. Second, those production numbers are getting more and more attention. Despite the drop in oil prices, US production is still up 13.7% y/y.
