USD/CAD focus: EIA crude draws 865K vs 877K build expected amid Iran war focus

The weekly EIA report showed US crude oil inventories fell by 865K barrels against an expected build of 877K, following a prior draw of 1,892K. Gasoline stocks dropped 222K versus a forecast 153K build, and distillates fell sharply by 3,565K compared with an expected 100K decline. Late-Tuesday API data had pointed to a larger crude draw of 5,267K, a gasoline build of 1,427K and a distillate draw of 270K. Despite the supportive inventory figures, the source says the dominant theme is President Trump and the Iran war. One line of thinking is that Trump may blame advisors or others for the conflict and move to wrap it up. Election post-mortems show all sides blaming the unpopular war and rising gasoline prices for the defeat. The source reports no oil price move, no currency pair, no pip figures and no technical levels. For traders in oil-sensitive currencies such as CAD, the bullish inventory draws compete with geopolitical headlines. Any signal that the Iran war is ending could shift the energy price outlook.