With inventories expected to rise 2.33 million barrels, crude oil inventories surged by 4.87 million barrels for the 5th week in a row (despite some talking heads looking for a draw). There were significant builds across the board in all products. As far as rig counts dropping means production cuts - forget it - crude production rose 0.534% to a new record high and total inventories rose to a new record high. Furthermore, as the following chart shows, the total crude inventory is still massively excessive relative to historical norms for this (or any other) time of year.

5th week in a row of inventory build

to a new record high crude inventory...

Crude inventory remains massively high both seasonally and non-seasonally...

and as far as rig count drops meaning production cuts... not so much. Crude production just hit a new record high...

Charts: Bloomberg