The American Petroleum Institute (API) reported on Tuesday a draw in crude oil inventories of 8.587 million barrels for the week ending July 31. In the previous week, the API reported a draw in crude oil inventories of 6.829 million barrels, after analysts had predicted a small build. Oil production in the United States has now fallen from 13.1 million bpd on March 13 to 11.1 million bpd for July 24, where it sat for the second week in a row, according to the Energy Information Administration. The API reported a draw of 1.748 million barrels of gasoline for the week ending July 31—compared to last week’s 1.083-million-barrel build. Distillate inventories were up by 3.824 million barrels for the week, compared to last week’s 187,000-barrel build, while Cushing inventories saw an increase of 1.63 million barrels. Nick Note: This is the time of year demand is highest. WE HAVE SEEN A VERY SMALL PICK UP IN CONSUMPTION. The problem is its soon back to the bad ole days of lock downs. Reality is distillate inventories are still rising. And the draw down from all time record inventory levels as a percentage of over supplied markets are minuscule. Today we get the EIA numbers and my bet is TOTAL INVENTORIES are still rising…..