-Global crude oil inventories are drawing rapidly. US crude supplies have dropped from 536m on in late March to 466m (a 20-month low) as of last week implying average daily draw downs of 518k bpd over the last 4.5 months. By contrast, US crude stocks only fell by about 11m bbls during the same period in 2016 and the average draw during the same period from 2012-2016 was 28m bbls. OPEC data was also supportive of this story with JODI reporting Saudi exports to a 3yr low of 6.9m bbls in June with Saudi inventories fell to 257m bbls representing a 5.5yr low. – Spreads and differentials have responded to inventory draws in dramatic fashion with Brent m1-m2 trading to 29 cents backwardated this week while DFL Brent rallied 30 cents to -20 for a 3yr high. Midland-WTI flipped into positive territory (opposite weak wti/brent) at +40 for the […]