Bearish Crude Report sends Oil Down

Saturday, October 10, 2009

Oil slid more than 9% today after a US government report showed inventories of crude rose more than expected. Crude oil stocks rose by 6.7 million barrels, more than the 900000 barrel increase analysts were expecting. Gasoline and distillate stocks also rose.

"This is a very bearish report. Crude stocks are up due to higher imports," said Tom Knight, a trader at Truman Arnold in Texas. "The build in products is also bearish."

Now the question is: are we going to retest the lows on the oil futures? Maybe. And if we do I am going to buy big. Oil will be much higher 6 or 12 months from now.

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