Production, meanwhile, rose 4 percent last week to 922,000 bpd, the highest reading since late December. One trader said the imports, which he said came from a Brazilian vessel supplying ethanol into Florida, came as a surprise. The futures contract closed 9 percent lower at $3.20 per gallon. Traders noted the current front-month contract, which is April, is due to expire on Thursday, prompting a sell-off of that month's paper. However, the May contract also dropped, closing 10.4 percent lower at $2.499 per gallon.
Mini Stimulus in China does not seem to be giving the oil market that much of a boost. China spending money on roads and railroads is not the shot in the arm that the oil bulls were hoping for. Copper also is not imposed and is working lower even after a massive aftershock in Chile the world's largest producer. Because there were no reports of damage to copper mines and little reported damage to Chilean ports the market is easing back on weakening demand expectations.
Natural gas report today
I am looking for a 76 bcf withdrawal. The big question the market will be asking is whether we can ever get back to full storage by next winter. Probably not! This is a bull market waiting to happen and any disruptions to production could send this market soaring.