WTI/RBOB Extend Rebound After Surprise Crude Inventory Draw

WTI/RBOB prices ended the day lower but bounced a little after Trump's statement, running flat into API but a pushed WTI briefly back above $70 following a surprise crude draw (and large product draws).

API

Crude -1.85mm (+1mm exp)

Cushing +1.653m

Gasoline -2.055mm

Distillates -6.674mm – biggest draw since 2004

Surprise crude draw and big product draws broke the trend of the last two weeks…

Of course, all eyes are focused on Iran more than inventories. The U.S. decision to reinstate “the highest level of economic sanctions” on Iran will lead to gradually and modestly reduced oil production by the world's fifth-largest producer, according to Oxford Economics.

Heading into the API data, WTI/RBOB prices were flat line after the swings around Trump's statement and CNN's fake news… and both popped a little after – with WTI tagging $70 once again…