Higher than expected new jobless claim, lower than expected orders for durable goods, the Kuwaiti oil minister talking about increasing supply, and the continuing build in U.S. crude inventories led to the 3rd day in four of falling prices.
Also growing is the premium paid for Brent over WTI due to the the inventory build in Cushing. The premium is now over $12 with Brent closing at $97.34. The premium doesn't just reflect the inventory build but also reflects demand that seems to be growing outside the U.S. but does not seem to be increasing to any degree in the U.S. To accentuate stale U.S. demand, refinery utilization is down to 81.8%.
Today, crude -$1.62, $85.63; gasoline -4.94¢, $2.3811; -1.42¢, $2.6548.
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