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 Bank of Japan has recently pledged to double its government bond holdings in two years, thus actually surprising the market with its extreme level of aggressiveness in trying to combat and reverse deflation that is plaguing Japan.
Seasonal RBOB traders beware! The Energy Information Administration rocked the market by reporting a surge in oil supplies and rocking refinery runs. U.S. crude oil stocks climbed by a higher-than-expected 2.7M barrels.
Why all this interest in the long side of natural gas? Because the hedge funds realize that we are crossing that historic turning point in this market where demand growth expectations will start to outstrip production increases.
The Brent-WTI spread continued to widen due in part to the growing U.S. oil glut but also because of an increase in the geo-political risk trade. Iran dashed hopes that there might actually be progress with the Iranian nuclear soap opera.