Phil Flynn: It's so Funny How we Don't Talk Supply Anymore

It's so funny how we don't talk supply anymore.

It's so funny how we don't talk supply anymore. But I ain't losing sleep and I ain't counting sheep. Yet today we may be counting barrels. Yesterday it was about increasing interest rates in Australia and conspiracy theories against the dollar. Oh no!, they are plotting against the dollar! Run and hide! Run and hide in commodities. Today it may be back to good old supply and demand. The Energy Information Agency releases there weekly snapshot of supply and demand and now the market will focus on the old fashion fundamentals if only for a moment. And judging by Last night’s American Petroleum Institute’s version this report may raise a few eyebrows, especially when it comes to distillate supply

The API reported a stunning week over week supply drop in distillates of 2.9 million barrels. This was the main feature of the report and the main reason it will fall into the bullish category. Heating oil stocks fell by 892,000 barrels. The API also reported a small drop in crude oil supply to the tune of 254,000 barrels most of which came in Cushing, Oklahoma the Nymex delivery point. Gasoline stocks rose a modest 544,000 barrels. Despite the fact that supplies in every category are well above normal, if the EIA reports similar number this should feed into the bullish momentum that has engulfed.....Read the entire article.