Anxiety over Rexit and growing concerns that global demand might not absorb swelling US supplies sent WTI/RBOB notably lower today but prices rebounded modestly after API showed notable product draws and smaller than expected crude build.

“The EIA report yesterday about the expected increase in shale output next month certainly weighed on things,” John Kilduff, founding partner at Again Capital, said in a phone interview to Bloomberg.

API

• Crude +1.156mm (+2.5mm exp)

• Cushing -155k (unch exp)

• Gasoline -1.262mm

• Distillates -4.258mm - biggest draw since Oct 2017

12th week in a row of Cushing stock declines but what was notable was a smaller than expected crude build and sizable product draws...

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WTI/RBOB prices lifted off the day's lows after the API data...

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But, “there is a good chance you will get a new all time record in production,” Bob Yawger, director of futures division at Mizuho Securities, said in a phone interview with Bloomberg. “That is going to add barrels.”