U.S. oil production is soaring, hitting the highest level in 22 years at 7.55 million barrels a day! Oh sure U.S. oil supplies fell by 2.8 million barrels but that was mainly because U.S. refiners went on a tear producing product.
While Ben Bernanke is still talking about tapering, he made it clear that his plans on tapering are not on a preset course. Oil as well is not on a preset course but at some point soon we should see oil drop about $10.
U.S. oil refiners may draw from a reserve of 2.5 billion Renewable Identification Numbers that they’ve banked in previous years to meet federal requirements for the amount of ethanol they blend into gasoline this year.