Event watch list – Inventories update

API numbers are in lower than expected, but the real news is not that crude inventories are down and refined stocks are higher by a less than expected amount. The real news is here:

"Crude inventories in the world's biggest oil consumer fell 63,000 barrels.

Analysts polled by Reuters had expected them to rise by 2.2 million barrels.

Crude imports fell 336,000 barrels per day to 8.04 million bpd


The 4% reduction could be on account of weather related delays and that would be great news for oil. But if it is not weather related and we will find out tomorrow when the EIA numbers come out then demand in 2010 is going to be nothing like demand in 2008 or 2009. Expect crude to head lower today, tomorrow and Friday.