Oil Inventory Disparity Rules! EIA Report reverses API... Oil and ES Pivot Lower

After the API Inventory drawdown, and the Iranian's apparently playing nice-- and agreeing to freeze output, albeit at high levels, it is interesting that this morning's EIA Oil Inventory build put the kabash on an otherwise constructive period for Oil prices (lower chart).

While the oil weakness could be a function of a near-term overbought condition after the upmove from $26.14 to $31.98 or 22% since Feb 11, my sense is that traders also are in a "show me" frame of mind now.

That is to say, "show me" that the producers have more resolve than just "talk," and their inability to finance future E&P spending (at current prices) means they will resort to actual coordinated cuts in the months ahead.

Meanwhile, the EIA build and the overbought condition appear to be the flavor of the day driving crude oil direction at the moment.