The API report Tuesday afternoon, said crude stocks last week declined 741,000 barrels, gasoline inventories fell 1.7 million barrels and distillate stockpiles dropped 3.1 million barrels.
An expanded Reuters poll on Tuesday forecast that domestic crude stockpiles fell 300,000 barrels last week. Distillate stocks rose 800,000 barrels and gasoline stockpiles rose. In futures trading Crude Oil is trading up around $84, the API numbers seem a little hard to understand as they are showing that crude imports are up while refinery runs are just up a little bit 400,000 barrels, the poll showed. Lets wait for the U.S. Energy Information Administration's ~ EIA report tomorrow morning (10:30am) to see if these numbers stick. Prices are up from the recent drop on several factors...prices rose as traders covered short positions ahead of expiration of the front-month May contract; volcanoe grounded flights in Europe are resuming and the Goldman Sachs/SEC fraud news is diminishing somewhat.
Looking at the charts does raise some cautious 'yellow' warning flags and Itz has been forewarning that a near term decline in crude is highly probable.
Itz Stock Chartz has been repeatedly suggesting hedging energy via ProShares inverse ETFs. >>READ If the EIA weekly report does show a build in crude oil ~~ Itz Pix will then suggest adding the ProShares UltraShort Crude Oil ETF (SCO) to its portfolio. Note this is a hedge against Itz Pix energy holdings, RIG, PDE, SU, PWE & PGH. Along that thought this would be a trade and a short term holding.
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