We have just seen another build in crude oil inventories according to the Department of Energy data.� The build is not in finished products, but the increase in crude oil inventories was +5.6 million barrels to 366.7 million in the U.S.�� Gasoline levels fell by -0.9 million barrels to 216.5 million barrels and distillates fell by -1.2 million barrels to 139.6 million barrels.� This is putting the heat on the United States Oil (USO) and Oil Services HOLDRs (OIH) funds.
If you think this is not demand destruction causing the build-up, guess again.� We have outlined issues with refineries, and that is being shown here as well.� A week ago we had 81.8% capacity, but this week we saw 80.4% capacity.
This looks like it is now the 5th week in a row of a build up in crude oil products.� This also looks like it is getting close to�very recent�highs in crude levels.
United States Oil (USO) is now down around $29.00 after being at $29.55 before the news. The Oil Services HOLDRs (OIH) also saw a drop to under $84.00 after being around $84.50 before the news.
JON C. OGG
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