A big increase in crude oil supplies in the latest week didn't deflate a rally in the futures market, as a weaker dollar and improving financial mood helped keep prices over $50 a barrel.
The government's weekly Petroleum Inventory this morning showed supplies up 4.1 million barrels from the previous week. While that exceed initial expectations of analysts, whose guess was 2 million less, it actually came in below the increase reported by the American Petroleum Institute's survey. That report, out Tuesday, put supplies up 4.6 million barrels.
Futures eased off highs but remained in the fairly narrow trading range seen over the past month, thanks in part to a big draw down in gasoline inventories — 4.7 million barrels, which exceeded all guesses ahead of the report. The big drop came as demand is just about steady from last year's levels, despite the economic slowdown.
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