API Oil Inventories

Earlier today I wanted to remind everyone in USO how volatile recent inventory  prints have been especially the API inventory with the EIA tomorrow morning, often reversing whatever SPI might have gained, not typically on the draw as this is the 3rd consecutive week, but on the increase in oil production.

Once again the API inventories released at 4:30 p.m. came in at a 3rd consecutive weekly draw of -2.9 mn bbl, which sent Crude futures up and then right back down, perhaps because the draw was less than last week's -6.7 mn bbls. Tomorrow EIA inventories should give more clarity at 10:30 a.m.

A look at the immediate knee jerk reactions...

 The API print first pumped oil higher, then it dumped back down again.

Intraday crude futures looked like this.

For the other timeframes for crude futures, see today's update, Crude Futures.