| EIA Petroleum Status Report |
| Released on 1/19/2012 11:00:00 AM For wk1/13, 2012 |
| Prior | Actual |
| Crude oil inventories (weekly change) | 5.0 M barrels | -3.4 M barrels |
| Gasoline (weekly change) | 3.6 M barrels | 3.7 M barrels |
| Distillates (weekly change) | 4.0 M barrels | 0.4 M barrels |
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Demand indications are very weak in this week's petroleum inventory data. Gasoline demand, measured here by changes in wholesale supply, is down 6.1 percent in the January 13 week for the steepest year-on-year decline of the recovery. Distillate demand, at minus 4.1 percent, is at a six-month low while jet fuel demand, at minus 5.6 percent, is at a year-and-a-half low.This report is offering a leading signal of weakness for final demand.
USO...
This is the overall USO trend, there's no need to mark the divergence as it should be very clear as USO has trended laterally in price (most often where distribution/accumulation events occur), 3C has clearly been trending lower suggesting distribution throughout the area.
This is the most recent break down in USO, it is a bear flag, note volume confirms. The following timeframes will focus on this area.
15 min is negative at the start of the flag pole, the vertical drop in price, as the flag portion has unfolded, the 15 min chart has gone negative in to the matured flag.
The 5 min chart focusses on the same area, with some more detail, it too is negative in the flag portion to the right and has bled in to the 15 min timeframe.
The shorter charts offer more detail as they see the divergence first and bleed in to the longer charts so long as there is sufficient weakness in underlying trade.
The 1 min chart shows the flag area, clearly quite negative on the maturing of the flag.
A bear flag is a bearish consolidation/continuation pattern. The longer trend and the more tactical bear flag both look very weak here.
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