Oil prices are mixed in early morning trading after strong across the board gains on Tuesday. Last night’s API oil inventory report showed builds in crude oil and gasoline with distillate fuel declining on the back of a cold weather reporting week.
WTI got a big boost as Trans-Canada announced the southern leg of the Keystone Pipeline is operational driving up West Texas Intermediate versus Brent Crude as the market anticipates that will mean more products for export and a reduction in the global spread.
Oil volatility is back and the bulls are no longer going to get a free ride bought and paid for by our friends at the Federal Reserve. Add to that the fears of a China meltdown based on a credit freeze.
Pull out the party hats! Dow closed above 15000 for the first time in history! Although the Dow is rocking, and that has been a factor in the increase in oil from the lows, Dow records are just not what they used to be.