After last week's surprise draw (but big build at Cushing), API reports a bigger than expected crude (and Cushing) build and bigger than expected draw in Gasoline inventories. For now, both WTI and RBOB kneejerked higher but WTI faded very rapidly.

API

• Crude +4.539mm (+3mm exp)
• Cushing +1.968mm
• Gasoline -4.934mm (-2.4mm exp)
• Distillates -883k

Another big Cushing build and another big gasoline draw...

And the immediate reaction in WTI and RBOB - after both sold off today despite Russian jawboning -

Bloomberg reports:

"The catalyst is concern over demand due to potential difficulties with President Trump getting his pro-growth agenda through,” Bart Melek, the head of global commodity strategy at TD Securities in Toronto, says by phone. "The crude market acted technically here."

"We’re still pretty high when it comes to inventories and if they keep getting higher, it’s only going to put more pressure on the market," Carl Larry, principal consultant for Oil Outlooks and Opinions in Houston, says by phone.