Surprise drop in gasoline supplies

The Sept NYMEX crude oil contract hit a high of $117.46 and settled up almost $3 on the day at $116.00 after the Energy Dept reported a surprise drop in gasoline supplies (by 6.4 million barrels, triple the forecast and the third week of decline). Since we know people are driving less, this drop has to be due to inventory management by the oil companies and thus means absolutely nothing for the price of crude oil, but never mind—the market wanted a correction.

It may get more, one, too, if hurricanes keep developing.

Bye for Now

Barbara Rockefeller