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Oil prices dipped lower today, consolidating just off five-month highs.

Expectations were for a third weekly crude draw in a row and an eighth weekly decline in gasoline stocks…

API

• Crude +9.34mm (-1.2mm exp) – biggest build in six weeks

• Cushing +2.39mm

• Gasoline -4.437mm (-1.7mm exp) – 8th straight weekly draw

• Distillates +531k (+100k exp)

Against expectations of a small draw, API reported a surprise significantly large crude build and stocks at the Cushing Hub rose notably. Gasoline stocks fell for the 8th week in a row..

Source: Bloomberg

WTI was hovering around $81.50 ahead of the API print and legged lower on the surprise crude build…

And finally, as gasoline stocks decline, wholesale gasoline prices imply pump prices are going much higher…

Source: Bloomberg

Not a good sign for Powell or Biden…