Update. API reporting a larger than expected inventory draw of 2.4 million barrels. We'll see, the real report comes tomorrow at 10:30.
This has moved the market back about halfway from the brexit stumble - quite an accomplishment with the firm dollar.
we are still importing more than 1 million barrels a day from the Saudis - i think the average is about 1.2 - used to be closer to 2 - but, since aramco now owns the largest us refinery, they have established a powerful beach-head in our market and will always be a big part of our imports.
"The problem is US inventories don't necessarily reflect the market, as we import so much oil."
You are right of course. But the inventory haze cuts both ways - Saudi inventories are down 38 million barrels in the last 6 months. Their ambitious plan to punish the frackers and Iran has greatly diminished their stocks - in effect, that inventory was just transferred from their tank farms to ours....