Once again it’s all about oil and once again there is another drawdown on gasoline that’s actually moving the needle for the crude and equities market. The street was looking for a drawdown of 1.4 million barrels but instead the drawdown was 4.5 million. Consumption of 9.3 million barrels a day is up 7% from a year ago. It’s somewhat anecdotal, but certainly higher demand is a great sign even if crude inventories are at record highs and gasoline well above its historic average.
Petroleum Inventory Report |
Estimate |
Actual |
Total Inventory |
Crude |
+3.9 million |
+3.9 million |
521.9 million |
Gasoline |
-1.4 million |
-4.5 million |
250.5 million |
Now crude (West Texas Intermediate) is back to serious resistance that begins at $38.000 through $40.00.
I like the action in the market, and in blue chip names like IBM, but I can’t force the issue with a fresh buy. Note: Our cash position is much lower as we’ve been putting on positions in the past month.
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