Amid the volatility of crude prices, inventory levels, and headline hockey; API printed a surprisingly large 4.464mm crude build (against expectations of a 850k draw). Having spiked early in the day on Iran rumors (and failed to fall on denials), WTI kneejerked lower after the API data showed the biggest crude build in over 4 months (and a bigger than expected build at Cushing).

API

• Crude +4.464mm (-850k exp)
• Cushing +417k (+200k exp)
• Gasoline -2.2mm (-1.7mm exp)
• Distillates -834k

Biggest build in crude in over 4 months... (4th weekly draw in gasoline)

The initial reaction was a kneejerk lower.. but not much...

So to summarize, Goldman points out that even if the agree a freeze, it will be self-defeating, Iraq wants to up its output, Nigeria is set to increase supply, and Iran officials denied the unconfirmed rumors of its support for a freeze. As Michael Loewen, commodities strategist at Scotiabank, noted "