Hear that giant sucking sound? It's the last shreds of bearish momentum being sucked from the oil patch thanks to today's inventory reports. Heading into today's inventory reports, analysts (and experts) expected a slight increase, so the true data from the Energy Department and the American Petroleum Institute (API) should be considered a bit of a surprise. According to the Energy Department, crude supplies slipped a staggering 5.3 million barrels to 316.6 million barrels on hand. Gasoline supplies shed 2 million barrels to 193.8 million while distillates contracted by 1.8 million barrels. If that data wasn't enough of a surprise for you, the API reported a decline of 6.3 million barrels in the realm of black gold. Gasoline supplies fell by 1.5 million barrels and distillates dropped by 1.1 million barrels.
To say that crude has rallied in the wake of the report may be a bit of an understatement as (at last check) the per-barrel price was 1.7% ($1.43) higher. However, assuming that oil-related stocks and sectors have joined in would be incorrect. Two major names in the oil patch (ConocoPhillips and National Oilwell Varco) have dropped after their earnings reports and are acting as a bit of an anchor.