Okay, the oil bears have got to have the momentum now. If fundamentals count for anything in the oil market, then the weak demand in the U.S. should help push oil prices back down.
U.S. crude-oil inventories showed an unexpected gain last week, increasing by 2.8 million barrels, sharply wrong-footing analysts expecting a decline of more than 1.4 million barrels.
Even starker was the gasoline picture: A 5.4 million barrel increase last week, the biggest weekly jump in almost a year. Gasoline supplied to consumers fell to 8.79 million barrels, the lowest level since January.
All of that underscores the idea that, even if the U.S. economy is showing signs of recovery, demand for oil and petroleum products is definitely not marching in lockstep....MORE
Wednesday, September 23, 2009
So much for "Organic" Growth: "Oil Prices: Crude Plunges Below $70 as Inventories Soar"
I couldn't resist the play on words. It raises a serious point however: The growth that will be reported for the current quarter is entirely dependent on government money. Sustainable, private sector economic activity is stagnant. From Environmental Capital: