August 26, 2009

It's was inventory day and the bearish inventory news pulled prices down despite some wishful thinking by some traders looking at early economic news. The bearish inventory reports are significant because Labor Day weekend is only ten days away and crude, gasoline and diesel inventories are not only higher than expected they are growing when consumption should be at its highest. The actual decreases in futures prices were small but crude was flirting with $75 early in the day and fell once the market understood the nature and the size of the inventory build.