Oil prices rebounded from yesterday's drop (after China stimulus chatter) despite the U.S. Energy Information Administration trimming its forecast for 2019 petroleum demand slightly in a monthly report released today.

“The Chinese are throwing everything they can" at their economy, said John Kilduff, founding partner at hedge fund Again Capital LLC. “That’s the big key to oil markets, especially when you have OPEC and Russia starting to rein in production."

API

Crude -560k (-2.5mm exp)

Cushing -796k - biggest draw since Sept 2018

Gasoline +5.99mm

Distillates +3.214mm

After massive product builds in the last two weeks, API shocked with yet another huge build in Gasoline and Distilates but a rather disappointing (for oil bulls) smaller than expected draw in crude...

Overall inventories remain near November lows.

WTI was hovering just above $52 ahead of the API print, but kneejerked lower on the smaller than expected crude draw