WTI was still trading lower after API reported last night's surprise crude build, and traded lower initially after DOE reported a massive surprise crude build. Additionally, US production hit 11mm b/d for the first time ever.

As Bloomberg Intelligence's Senior Energy Analyst Vince Piazza notes, even as U.S. crude inventories drain, concerns persist over global growth amid trade tensions driven by geopolitics and an increase in OPEC quotas. Slowing demand for refined products, which is tied to higher crude prices and emerging-market struggles, has dampened optimism for U.S. refiners.

API

Crude +629k (-4.1mm exp)

Cushing -1.34mm (-700k exp)

Gasoline +525k

Distillates +1.711mm

ADOEPI

Crude +5.84mm (-4.2mm exp) - biggest build since April

Cushing -860k (-700k exp)

Gasoline -3.17mm

Distillates -371k

After last week's massive draw (and API's surprise build), this week saw a huge rebound in crude inventories

But while US crude inventories surged, Cushing continues to draw down...

Permian pipeline bottlenecks continue to pressure discounts...

But production resumed its rise (after a 3-week stall) up 100k b/d, hitting 11mm b/d for the first in history...

So supply is surging, inventories are being built... because US exports are collapsing...

China, much?

And then there is this - why did US suddenly import a massive, record amount of crude from Ecuador last week?

Two words - Julian Assange?

WTI was trading lower into the DOE data (after API's surprise build) and slid further after the surprise build...

But then - as the machines stepped in - WTI rallied!!??