Oil rises as Ramadi falls as this markets price action continues to defy the calls for an oil price crash. ISIS forced Iraqi security forces to flee the largest province in Iraq despite help from U.S. air support.
For the most part, the price discovery in energies was muted by mixed data. The soft Euro Zone and Chinese data was joined by worse than expected U.S. retail sales, putting a negative spin on demand side pressure. This affect was offset in the energies by unexpected draws in the EIA report in WTI, gasoline and distillates.
The drawdown in Energy Information Administration (EIA) inventories yesterday further fueled the strong WTI contract to better than $62 before the sliding equity markets and the weak dollar pulled it back down.