Today's release of crude oil inventories from the Department of Energy showed a larger than expected drawdown in stockpiles (4.696 million barrels vs 1.4 million barrels). It was also the second week in a row where inventories dropped by more than 4 million barrels. In fact, the two week drop of nearly nine million barrels is the largest two week drop in crude stockpiles since December 2011. While crude oil inventories are finally starting to move in the direction that they typically move at this time of year, there is still a long way to go before they are anywhere close to normalized levels. The last time that crude oil inventories were this much above average at this time of year was back in 1990.
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