Via Bloomberg:
A decrease in imports made for a 0.9 million barrel draw in oil inventories, to 363.2 million barrels for the May 28 week. Gasoline inventories fell a steep 2.6 million barrels to 219.0 million, a dip that does not match up with soft demand readings including a three-month low for the year-on-year rate, at plus 0.5 percent though the Memorial weekend shift to Monday may be distorting this comparison. In contrast, distillate demand is increasing, up 17.1 percent year-on-year to indicate acceleration in the industrial sector. Oil firmed about 50 cents to $73.75 in reaction to the headline oil and gasoline draws.
Both Crude and Brent rallied after this report was dispersed. I am interested to see how long crude oil will trade between this $70-$75 range. If the dollar remains strong throughout Q3 I expect prices to trade between $65-72. However, if the Euro regains confidence then we could see prices as high as $85/barrel this summer. Time will tell. The OPEC basic traded @ 70.98 as of 6/1. I expect the financial police will continue keep prices in line.
Dinner in the city, then back to the Bronx to watch The Finals. The Black Mamba will dominate tonight. Lakers in 5.
Patrick M. Ambrus
Managing Partner
Analyze Capital LLC
Twitter: AnalyzeCaital
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