Today's release of energy inventories from the Department of Energy showed a larger than expected draw in crude oil inventories (-2.357 mln barrels vs -0.3 mln forecast). In spite of the larger than expected draw, crude oil inventories remain well above average.
The real story behind today's report though was the huge increase in gasoline inventories, which rose by 7.86 mln barrels (expectations were for a build of 1.7 mln barrels). This was the largest weekly build in gasoline stockpiles since September 2001 in the aftermath of the 9/11 World Trade Center attack. Even after this build, however, current stockpiles are now only modestly above average for this time of year.