On Wednesday, the Energy Information Administration (EIA) Weekly Petroleum Report showed a draw-down in crude for the seventh week in a row. While that should be a bullish data point, crude moved lower and broke down through key levels, giving back gains it had seen earlier in the week. Crude was moving higher due to the Tropical Storm Bill hitting the key oil state of Texas and as API data on Tuesday showed a drawdown in gasoline and crude stocks. Alan Harry of Harry RE Trust, tells TheStreet’s Jill Malandrino the drawdown was less than traders expected in a market that is severely oversupplied. Harry explains that traders need to see a lot of crude come out of the inventories which has not happened. There was also a lot of speculators in the market that did not get the number they were looking for and now they are pulling out. In addition to a lower-than-expected drawdown, there was a build on the product side as gasoline inventories rose when they typically should be moving lower during peak summer driving demand.
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