The API reported an inventory build this week, however, last week they had a huge draw.
The EIA last week had a small draw and reports at 10:30AM Wednesday.
It is very possible that the API numbers are fudged week to week due to when they account, so, we could see EIA with a draw.
The Fed will likely be dovish tomorrow and might even surprise with no rate hike.
If EIA shows a draw tomorrow, especially of about 8m barrels representing 2-week differences with APi and new Saudi cuts, that could mark the bottom in oil prices.
We have taken it on the chin with oil even though America is unique in having built oil inventories the past several months. The rest of the world did not. Our inventories are a direct result of Saudi Arabia increasing exports to the U.S. in response to the Iran sanctions and at President Trump's request.To read more, a subscription is needed: Click here to subscribe