Notable weakness in oil prices amid growth/demand concerns, following Genscape's (+821k) Cushing's big build report, and expectations for continued builds in overall crude and Cushing levels set up trades ahead of API's report with oil below $44 heading in. An overall crude inventory rise of 1.3mm barrels (almost double the 750k expectation) was not enough to trump a smaller than expected Cushing build of just 382k barrels (1.3m exp) which seemed to please the machines which ripped WTI back above $44 instantly.

As Bloomberg reports, Crude inventories +1.3m, gasoline -1.2m, distillates -2.6m, according to person familiar and reports on Twitter. Cushing crude inventories +382k

API:

• Crude +1.265m (+750k exp)
• Cushing +382k (+1.3m exp.. Genscape +821k)
• Gasoline -1.17m
• Distillates -2.6m

Cushing's lower than expected build is the biggest driver for now...

“The reality is that gasoline inventories remain healthy and the runup had a lot to do with the seasonal trade and fear of ongoing production issues,” says Eric Rosenfeldt, vp of supply, trading at Papco
 

And the reaction in crude, after jumping higher after the NYMEX Close...

“The price of crude got ahead of itself,” Michael Corcelli, chief investment officer of hedge fund Alexander Alternative Capital in Miami, says. “The supply issue is definitely there. That’s not something that is going to change. Now people are starting to get worried about demand.”

Charts: Bloomberg