DOE’s tempt Futures to sell off

Posted by Mark Pszeniczny on Dec 8, 2010 9:55:00 PM

You wouldn’t know it from looking simply at the closing figures that todays inventory report was initially viewed as wildly Bearish.  Confirming last nights API report with a draw of 3.8mbl in Crude, a build of 3.8mbl in gasolines and a build of 2.2mbl in distillates, pits tanked over 3 cents down around 10:30 this morning.  The losses were short lived however as others focused on demand numbers that showed some strength.  Additional reports of severe cold stretching from Northern Maine to South Florida fed the mid day rally that had HEAT pits dancing in  positive ground after lunch.  Again, on the surface, it appears the NYMEX wants to go lower, and the $90 resistance level of Crude appears to be holding.  But as to why we are not seeing the dramatic falls, like we saw the dramatic rises are beyond my explanation.   Even with the large draws in Crude, inventories are still well above last year and a lofty 25mbl over the three year average.  As I have said it appears Fundamental analysis is dead.  At the Close, Crude slipped .41 to $88.28, RBOB lost .0184 to $2.3046 and HEAT fell only .0095 to $2.4607, this after touching the $2.43 level earlier in the day.

Topics: The Market, API report, NYMEX, Distillates Build

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