Energy Prices Choppy After Report
Petroleum inventory numbers muddle the markets, offering mixed messages for bulls and bears.
Bryce Knorr
Published: Jun 17, 2009
This morning's weekly Petroleum Inventory had something for both bulls and bears. Perhaps not surprisingly, prices were choppy with mixed results in the aftermath of the numbers.
The government reported crude oil supplies were down 3.9 million barrels in the latest week, more than twice the level predicted by industry analysts. At the same time, gasoline supplies surged 3.4 million gallons, taking some of the pressure off inventories that have been below five-year lows for the past month.
Tightening gasoline stocks as the summer driving season began have been the primary mover behind the big run up in prices recently. Still, the price at the pump is well below last year's record levels, one reason why demand is up around 1% from 2008.
At the same time, crude oil supplies have been more than adequate, and still remain above five year highs despite this week's draws. That has some traders questioning whether the recently rally had more to do with speculation from outside investors rather than supply and demand fundamentals.
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