Oil prices held on to gains overnight after a surprisingly large crude draw reported by API (though crude is down about 18% from its late April highs as the trade war between the U.S. and China, the world’s biggest economies, weighs on demand.). “The drawdown will certainly help support sentiment,” said Daniel Hynes, a senior commodity strategist at Australia & New Zealand Banking Group Ltd. in Sydney. “But the market is definitely taking the glass-half-empty type approach to data.” API Crude -3.454mm (-1.8mm exp) Cushing -2.803mm - biggest draw since Feb 2018 Gasoline -403k Distillates +1.806mm DOE Crude -2.73mm (-1.8mm exp) Cushing -2.485mm Gasoline +312k Distillates +2.61mm After two weeks of unexpected builds, crude inventories drew down more than expected last week (though less than API reported) and Gasoline stocks rose modestly... Source: Bloomberg Despite the ongoing collapse in the oil rig count, US crude production remains near record highs... Source: Bloomberg WTI tested above $57 ahead of this morning's inventory data but slid lower after the DOE data printed below API's... “It’s a tight market right now,” said Bjarne Schieldrop, the Oslo-based chief commodities analyst at SEB AB. “But the assumption is that the future will be very bleak and bearish.”