The Energy Information Agency shocked the market by reporting that U.S. Crude supply increased by 6.7 million barrels putting supply at the highest level in 82 years. So much for that uptick in gasoline demand.
The oil complex is in a battle between the perception traders, who look for more stimulative measures, and the reality traders, who see the global economy is slowing and demand for oil will continue to decline.
As Hurricane Isaac passes through the area over the next several days the industry will be able to quickly assess the condition of the oil and Nat Gas facilities. Until then, it focuses on inventories.