La Croix Energy Capital | Petroleum Derivative Trading

“Think like a fundamentalist; trade like a chartist.”
Dennis Gartman. Rule #8 - Gartman’s Simple Rules of Trading

Tuesday, May 18, 2010

API Stocks 14-May-10

Change mmbbls
Crude: -0.8 (vs. +0.7 fcst)
- Cushing: +0.9
Gasoline: +1.0 (vs. -1.1 fcst)
Distillates: -0.3 (vs. +1.0 fcst)

Phil Flynn, an analyst at PFGBest in Chicago, said Tuesday's early rally was doomed to fail, given the lopsided supply-demand picture. Oil bulls "have been trying to shine a light on positive economic data as the reason to be blindingly bullish on oil."

But hints of economic recovery are being drowned by the high stockpiles. "We have not seen the evidence that demand can overtake the amount of massive oversupply," he said.