EIA / USO Update

The 10:30 EIA Petroleum report...
Released On 6/27/2012 10:30:00 AM For wk6/22, 2012

	Prior	Actual
Crude oil inventories (weekly change)	2.9 M barrels	-0.1 M barrels
Gasoline (weekly change)	0.9 M barrels	2.1 M barrels
Distillates (weekly change)	1.2 M barrels	-2.3 M barrels

There was a slight draw this week in oil, while gasoline inventories rose. From the report:

"Refineries are in high gear, operating at 92.6 percent of capacity in the June 22 week which is a recovery high. They're producing 9.3 million barrels of gasoline per day which, next to 9.6 million a couple of weeks back, is the highest of the year. The production is filling up inventories where gasoline is up 2.1 million barrels. Distillate production slipped in the week with inventories down 2.3 million barrels. Inventories of oil, little changed in the week at 387.2 million barrels, are extremely heavy and remain above their historical upper limit. Indications on the demand side are steady, showing little change for either gasoline or distillates. Oil is little changed in the $80.50 area following today's report."


USO's reaction...

 Not good. It would seem to me that oil is near the upper limits and gasoline inventories are quite high already, it doesn't seem to bode well for extra oil demand.

 3C dropped a bit more just before and after the report on the 1 and 2 min charts.

2 min.


We'll keep an eye out for a trade, but coupled with the Euro's drop and $USD's gain, it doesn't look very good for a trade in USO right now.

USO in green, the Euro in white-the Euro has lost ground since yesterday meaning the $USD has gained some ground, this is not supportive of higher prices in the near term for oil, but we've seen a lot of strange activity on EIA Wednesday's that hasn't made sense, but was still worth trading. I'll keep an eye on it.