Large oil draw surprises market

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 As a humongous draw to oil inventories has wrong-footed the market, crude prices have ripped higher in response. Hark, here are five things to consider in oil markets today:

1) Let’s cut to the chase; that was a pretty epic weekly EIA inventory report. The 14.5 million barrel draw to crude inventories was the second-largest on record, and the largest since January 1999. The draw took many by surprise, although we reported to clients last Friday that we expected a draw of over 10 million barrels.
 
The draw was driven by tropical activity in the Gulf of Mexico, and specifically Hermine. Imports into the US Gulf dropped by a whopping 760,000 barrels per day on the prior week, while imports to PADDs 1, 3 and 5 dropped by a whoppingly whopping 1.87mn bpd.
 
In addition to the storms materially impacting imports, we also saw temporary shut-ins in the Gulf causing a drop of