Quick drop lower
The US inventory report was bullish as more than 10 million barrels of supply were drawn down. There was also a surprise draw in gasoline.
Some of that was foreshadowed by the API report, but not all of it. Crude hit a session high of $57.64 after the report but is down $1.20 since. The bulk of the selling came on a break of $56.75 to a session low.
There isn’t any headline I can find behind the reverse. There is a story today about Saudi Arabia accelerating a plan pipeline to the Red Sea but if anything that reflects worries about Gulf maritime security, which is bullish.
One notable thing is that the high was almost precisely at the 200-day moving average. Technical selling?