RE:down, but still over 46The market is often skepticle of the API data - and rightfully so. Without other data (production, refinery utilization, imorts etc), the inventory number on its own can be very misleading. Not that the EIA is perfect, but at least they provide a reconciliation of all the relevant components, so their net inventory number usually makes sense. It could be that API messed up last week with their 6.2M draw and this week they are correcting their data.
One concern I have with reaction to this morning's EIA data is that Alaska is likely to bounce back (last week Alaska production declined by 152), so overall US production will likely rise. Hopefully the focus will be on lower 48 production because Alaska is prone to dramatic swings.