Over the course of the past few years, it has been difficult to see through much of the “speculation” that has a played a part in the rise and fall of the price of oil.
Now, as the price is rising again, part of the blame is due to the QE2 program/falling dollar, but emerging markets are playing a key role as well. Clearly demand is up and that shows through this week’s inventory data:
VERY BULLISH DOE REPORT
- Crude oil inventories had a draw of 3,274K (consensus is a build of 1,500K)
- Gasoline inventories had a draw of 1,917K (consensus is a draw of 1,000K)
- Distillate inventories had a draw of 4,972K (consensus is a draw of 2,000K)
- The change in refinery utilization was +0.60% (consensus was 0.00%)