Crude Rallies on Large Oil Inventory Decline
May 28th, 2009Via: Reuters:
U.S. crude oil futures rallied toward $65 a barrel on Thursday after government data showed that domestic crude inventories dropped much more than expected last week as refineries ramped up operations and imports fell.
Data for gasoline, which showed a smaller-than-expected stock drawdown, and a lower-than-forecast supply increase for distillate stocks were deemed overall bullish by traders.
Prices were already above $64 on better-than-expected U.S. economic data and a decision by OPEC to keep output steady, as expected, betting on a strengthening world economy and tentative signs of increased demand to boost oil prices.
“The data for crude and gasoline are bullish, and with the smaller-than-forecast distillate stock build, the EIA numbers appear to me bullish across the board,” said Mark Waggoner, president, Excel Futures in Huntington Beach, California.
The next shocks are headed our way, whether or not one believes in Peak oil…
My guess is up over 100 by autumn…
over 200 in a year or two…