Some so called experts or analysts said driving season is over and oil inventory would start buildup soon. The fact is current big inventory draw has little with seasonal demand. Last year inventory dropped 6m barrels from April to August, this year the number is 72m barrels. If you count the barrrels dumped from SPR, the inventory draw is 85m barrels. This most has been contributed by OPEC production cut and strong demand growth. With OPEC cut continues to next march, inventory will continue to fall!

Current commercial inventory level is same as that in January 2016. Total crude inventory is same as  that in October 2015! 

Duxing wrote: I mentioned many times: oil price is being depressed by hedge funds with intention to depress shale productions while oil inventory is dropping like crazy.

US commercial oil inventory has dropped by 70m barrel since it peaked at the end of March. If we take those 30m barrel dumped from SPR, it has dropped around 100m barrels. Right now, oil inventory is lower than February 2016!

when it goes up, it will be going up crazy!

If you looked at the same period last year, inventory only dropped 8m. This tells a truth: inventory drop was mainly contributed by OPEC cut not high seasonal demand. The declining trend will continue to next year. By year end, it will dropped to around 400m. Once a critical point of inventory level reached, oil price will burst!