WTI prices rebounded back above $69 today after Saudi headlines and inched higher still into the API print. However, prices slipped lower after crude inventories saw a surprise build of 1.25mm barrels (vs expectations of a 2.5mm draw).

API

• Crude +1.25mm (-2.5mm exp)

• Cushing -1.57mm (-800k exp)

• Gasoline -1.485mm

• Distillates +1.536mm

After four straight weeks of crude draws, API reported a surprise build...

WTI futs was trading up into the print but faded on the data showing a surprise crude build...

"We’re seeing spare capacity globally heading toward critical levels as sanctions against Iran start biting," said Bart Melek, head of global strategy at TD Securities. "As countries like South Korea stop using crude from the Islamic Republic, Saudi Arabia is going to try and fill that gap and we will see less capacity in the global supply chain of crude."