Oil traders are bullish today after weeks of inventory builds have now been broken. Here is a breakdown of the report:

Crude -1.699MM, Exp. +3.00MM

Gasoline -3.107MM

Distillates -2.715MM

Cushing +1.506MM

Production 12.6MM, unch

As you can see a build was expected and the result came in far below expectations and produced a draw. Alongside this data there has also been some bullish news Spot WTI strengthened after reports hit newswires that there could be another round of OPEC cuts. It was vague on the details but enough to push WTI higher.

Oil markets could now be looking to turn higher and if we get further confirmation about how steep the cuts could be we may in a bull phase. Be aware of consensus if OPEC underdelivers then the price could move back lower toward $50/bbl.