Today's release of energy inventories from the Department of Energy showed a larger-than-expected draw in crude oil inventories (-2.357 million barrels vs. -0.3 million forecast). Despite 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 million barrels (expectations were for a build of 1.7 million barrels). This was the largest weekly build in gasoline stockpiles since September 2001, in the aftermath of the 9/11 attacks. Even after this build, however, current stockpiles are now only modestly above average for this time of year.