Oil Rallies on Inventory Data

Sunday, October 11, 2009

For the second week in a row the inventory data fuels a rally in the crude oil NYMEX futures. This is the time to get in this market as a long term bottom maybe already made.

"Crude oil futures jumped about 2.5% in New York after government inventory data showed a smaller-than-expected buildup in oil stocks, and a sizeable drawdown on gasoline stocks. That could be a sign of a tepid recovery in demand in the world’s biggest oil-consuming nation.

The restrained reaction was a contrast to last week, when an unexpected decline in U.S. oil stocks turbocharged crude prices, which leapt 14% in a day.

Data from the U.S. Energy Information Administration showed U.S. crude stockpiles rose just 717,000 barrels—about half as much as analysts were expecting. Gasoline stocks fell 3.3 million barrels, the largest weekly drop since hurricane season last September." in the Wall Street Journal

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