More OPEC jawboning and continued (modest) draws in crude inventories beat production increases and SPR sales headlines heading into tonight's API data and with inventory drawdowns across the entire crude complex sending both WTI & RBOB prices jumped higher. However, prices quickly reversed lower as traders realized the Crude draw was smaller than expected...

API

• Crude -1.5mm (-2mm exp)
• Cushing -210k
• Gasoline -3.15mm (-1.08mm exp)
• Distillates -1.85mm

The 7th weekly draw in crude inventories in a row (but it was smaller than expected). Gasoline continued to draw...

WTI rallied into the API print, shrugging off SPR-sales supply concerns, and after the data hit spiked higher, then crude dropped as the draw was less than expected.

With OPEC close to agreement to extend oil-supply cuts for 9 months, “Everything throughout the course of the week has set up an opportunity for the market to gradually increase,” Thomas Finlon, director of Energy Analytics Group in Wellington, Fla., told Bloomberg.