Remember last week when we lost all that crude supply! Well no worries we found it! The American Petroleum Institute reported that crude stocks rebounded with a whopping 9.0 million barrel increase! A huge rebound in supply on both the West Coast and the Gulf Coast seems to suggest those transitory issues such as Tropical Storm Barbara and the tornados in Oklahoma played havoc with the numbers. Now that we are back to normal, the market at least for now, is focused on a mountain of supply and a questionable central bank stimulus putting oil back on the downward track. A build of one million barrels in gasoline and an increase of 199,000 barrels of distillate also is coming into play.
What is also coming into play is the fear of tapering. Rising bond and note yields are raising fears that the U.S. will further crimp energy demand. The emerging markets are shaky as cheap dollars fed cash flows into those markets.
Gas Price relief coming soon to the Midwest as refiners are finally coming back on line! Yet the storm system coming through this afternoon may keep us all inside. The AP reports that "Meteorologists are warning that a gigantic line of powerful thunderstorms is likely to threaten one in five Americans. The storm system packing tree-toppling winds is forecast to rumble Wednesday from Iowa to Maryland. The continuous line of storms might even spawn an unusual weather event called a derecho (duh-RAY'-choh). That's a massive storm of strong straight-line winds spanning at least 240 miles. A historic derecho last year killed 13 people and knocked out power to 4 million residents. Bill Bunting, operations chief at the National Weather Service's Storm Prediction Center, says Wednesday's storms are likely to produce tornadoes, dangerous lightning and large hail. Power outages are likely, to be followed by oppressive heat. Cities at risk include Chicago, Indianapolis, Cincinnati, Detroit, Baltimore, Washington, Milwaukee, Pittsburgh, Columbus, Ohio, and Louisville.