Today's EIA Inventory Head FakeLOL!
With so many fat fingers on the keyboards, and the market followed by a Borg cube worth of algos, the sell button was smashed upon the big headline crude inventory number release of a massinve +9.382 MM bbl build in crude.
WTI drops 1.3% instantly, then within seconds, retraces back to where it started, and keeps rising... Why?
The report:
Crude +9.382MM, Exp. +1.0MM
Gasoline -3.648MM
Distillate -2.902MM
Cushing +450K
But wait, there's more...!
When you dig a little deeper, and add in an SPR release of 3.89MM, we have an overall net Crude/Product/SPR draw of 1.05MM bbls. A bullish report.
Exports were down, imports were up, refinery runs were down due to turnarounds, and the SPR is being drained.
For those of us trading oil or oil stocks around EIA inventory time, this is why knowing all the details are important.
Whatever happens later in the day is anyone's guess.
Cheers