Cushing Inventories Decline, Anchored Ships Holding Crude Oil Sent Out To Sea
After hours on Wednesday, API Inventories for crude oil in the US reported a larger than expected build. Inventories increased 2.351 million barrels.
Cushing reported a drawdown of 1.03 million barrels.
The draw should not be much of surprise considering Monday evening saw ships leaving the Galveston, Texas port enroute to an anchoring position within the Mexican Gulf.
The API data follows a day of continued rumors in an effort to push crude oil spot prices higher through the new form of QE that we are dubbing "Verbal QE".
April 17 screen shot (image courtesy of MarineTraffic.com)
May 30 screen shot (image courtesy of MarineTraffic.com)
NYMEX Light Sweet Crude sold off on the news
One can only ponder how legitimate the oil market real is when reports show declines in inventories and market pundits proclaim demand increases in the face of clear evidence of oil being moved off shore. This is reminiscent of Goldman's Aluminum scam in Detroit back in 2013.
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