WTI Crude Spikes Above $42 As US Production Drops To 18-Month Lows

from Zero Hedge

Following API’s 3.1mm reported build overnight, expectations were for a 3mm build and DOE reported a 2.08mm build. Cushing saw a 235k draw from API and was expected to drop 1mm barrels but DOE reported just 248k drop in inventories as Gasoline inventories drewdown just 110k barrels (drastically less than the 1mm exp) and Distillates saw a large 3.55mm draw – the most in 3 months. Production appears more of a focus for now and fell once again last week to 8.953mm barrels (down 4.41% YoY) – lowest since Oct 2014. Crude prices had slipped overnight as Kuwait’s strike ended and Russia threatened to increase supply but the production slowdown and lower than expected inventory data sent WTI back above $42.

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