Following API's bigger than expected crude build, WTI's 'odd' jump has been erased, trading back below $66 as DOE data prints. Crude inventories rose for the sixth week in a row (as did Cushing stocks) but WTI popped back above $66 on the heels of big drawdowns in Gasoline and Distillates.

Bloomberg Intelligence Senior Energy Analyst Vince Piazza notes that "market sentiment seems to have come around to the view that U.S.-China trade tensions will weigh on global economic growth, suppressing demand for oil."

Last week’s DOE report showed an increase in refinery utilization, which “could have been indicative of the end of turnaround season. If we have that occur again this week, it will probably confirm that,” says Thomas Finlon, director of Energy Analytics Group.

API

• Crude +5.69mm (+3.2mm exp)

• Cushing +1.44mm (+2.1mm exp)

• Gasoline -3.5mm

• Distillates -3.1mm

DOE

• Crude +3.22mm (+3.2mm exp)

• Cushing (+2.1mm exp)

• Gasoline -3.16mm (-2.25mm exp)

• Distillates -4.05mm - biggest draw since Oct 2017

6th weekly rise in Crude and Cushing stocks and 6th weekly decline in Distillate inventories...

US Crude Production jumped notably on the week, back to record highs, rebounding after hurricane interruptions...

WTI sank back to a $65 handle ahead of today's DOE inventory data but bounced back up to pre-API levels on the smaller than expected crude build...

“You’re approaching a level where a lot of traders are looking at value,” said Josh Graves, senior market strategist at RJO Futures in Chicago.

“The market is looking at growth potential in the future and trading off of earnings announcements and anything that can give an outlook on what oil prices might be down the road.”

Today's angst in the oil complex is not over though, as the EIA-914 monthly crude production report is due at 12ET and may show a big jump for August (according to Rystad), and The Petroleum Supply Monthly will come out around 2pmET with the latest look at demand, crude by rail and exports.