Everyone expected crude to rise when the EIA inventory report came out today showing another large draw. However, the Irish debt problem and the Chinese deciding to increase interest rates to dampen inflation are global worries and those events set up another fall in crude prices. The analysts are also paying attention to fundamentals. The refiners are buying less hoping to cut back on carrying costs and that is why inventory is down while demand is marginally better than a year ago. Since going to nearly $88 last week, crude has dropped four straight sessions and is now knocking on the door of $80 and below.
Today, crude -$1.75, $80.47; gasoline +0.35¢, $2.1592; distillate -5.6¢, $2.253.
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