WTI snapped out of a two week coma on Wednesday trading to a low of $51.22 following an API report revealing a 14m bbl crude oil build which was later confirmed by EIA data. Technicians feared that a break below recent support near $51.50 and a spike in US crude stocks to within 3m bbls of their all-time high meant that oil’s ‘5 handle’ could be in jeopardy. A closer look at the data, however, brought relief to the market and a bounce back to the $53 mark with traders realizing that the second largest weekly crude oil build on record may not have been the fundamental disaster that the algorithmic traders had pounced on. – Rather than signaling a renewed supply/demand apocalypse, the inventory build appears to be driven by trading flows revealed in three different trends occurring in PADD III where 11m of the 14m bbl […]