Phil Flynn: Sitting Idle After Ida

After surging yesterday on the weak dollar and now tropical storm Ida, I think we can focus on all the bearish stuff that did not seem to matter. You know stuff like gas gluts and supply surpluses. As Ida hits the coast the market realizes that there is plenty of oil, products and spare production capacity to easily weather this tropical storm. More oil is on the way as the Saudis and OPEC send signals that more oil production is likely at the December OPEC meeting and news that China is raising the domestic cost of gasoline which could put a dent in China’s domestic oil demand.

Reuters News reported that Saudi Arabia, the world's top oil exporter, has increased December supplies to large companies, and one Asian customer is expected to receive full contract volume. Bloomberg News reported that OPEC is increasing output at the fastest pace in two years, adding to near record inventories. This is raising speculation that this is a precursor to OPEC oil increase at the December OPEC meeting. Yet Dow Jones reports that.....Read the entire article.