Like I said, "A lot can happen overnight"

We have USO down in pre-market and the market slightly up in pre-market. However, the troubling aspect I wanted to touch on briefly concerns oil. The Saudis have been putting out approx. 8.3 Billion barrels a day and because of the social bribe they have promised their citizens in the way of cash to try to keep an uprising at bay (worked in Kuwait thus far, didn't work in Bahrain) means the Saudis need to pump more oil to make up for their budget shortfall-estimated another 700k a day to 9 billion. No one knows for sure if they have the capacity as it has been believed for many years that they have over-estimated or overstated their spare capacity.

However, what is troubling is the difference between Saudi oil and oil from Libya or Oman. I mentioned this a few days ago and it seems the market doesn't get it, but how could they not? Saudi oil tends to be what is called "Heavy Sour", I'm sure you've heard of "Brent Light Sweet", the difference between the two is the oil's sulfur content which is much higher in Saudi "Heavy sour". Trucking/transports runs on diesel, if you've been to Europe, you know that diesel is actually more popular for cars then here in the states. It's actually cheaper to produce/refine because there's less sulfur to be removed, the reason it is nearly the same price is because there are heavy taxes levied on it because of the trucks that use it and do more damage to our roads, otherwise it would be much cheaper.

The problem with the Saudis saying they'll make up for the light sweet crude short-falls is the fact that it takes 3 Heavy Sour barrels refined to make 1 barrel of light sweet. The other problem is the refineries that refine light sweet crude are not set up to remove the heavy sulfur content in Heavy Sour, so how can they really make up for something that will take 3x more of and most refineries that need it can't refine it?

I have a feeling we are seeing some short lived manipulation as oil traders know way more then I do, so they know this. This is why you need to constantly keep your eye on these thieves. If USO doesn't move up today, I'm guessing it will very soon. We'll see how it trades and see if the thieves are puling a fast one, probably today.

If any wolf out there wants to contribute more to the discussion, let me know and if you've got some better information then my rudimentary info, I'd be glad to share it with the pack!