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.
Retail gasoline prices have hit their high for the year, but the news is not all bad. Despite the fact that AAA says prices have risen 17 cents a gallon, hitting $265 per gallon, prices are a lot lower than a year ago--and taking into consideration the fact that crude oil prices have soared, it could have been a lot worse.
It was another quiet over night session with little data out of the Far East and Europe. Better than expected German IFO data did provide a slight demand bid but it appears any real action will have to wait for today`s U.S. durable goods data.
Royal Dutch Shell is planning further job cuts in its UK North Sea oil and gas business in 2015, the company said on Thursday, just a week after a package of tax cuts from the Treasury aimed at encouraging growth in the industry.
Crude oil is dollar dazed and confused as it tries to determine whether it should focus on current oversupply, the dollar, or the prospect of better demand in Europe after we got more strong data out of Germany.