Having rebounded modestly back off a $65 handle intraday after OPEC/Saudi production comments, all eyes are now on API tonight which printed a huge 9.88mm barrel inventory build (biggest since Feb 2017) sending WTI back to a $65 handle.

Saudi Energy Minister Khalid Al-Falih said OPEC and its allies are in “produce as much as you can mode."

 

API

  • Crude +9.88mm (+3.7mm exp) - biggest since Feb 2017

  • Cushing +971k (+1.5mm exp)

  • Gasoline -2.8mm

  • Distillates -2.44mm

After last week's surprise crude build (for the 4th week in a row), API has some catch up to do to DOE data and catch up it did reporting a massive 9.88mm barrel build...

 

WTI was hovering around $66.30 ahead of the API data and dropped back to a $65 handle on the print...

"There are several reasons for the slide in crude oil, chief among them is it’s a risk-off day across all financial markets," said Bob Yawger, director of the futures division at Mizuho Securities USA. "You’re seeing people flee the commodities and equities space to most likely put their money in safe haven."