Wednesday, February 14, 2007
This weekly focus on oil inventories is dumb. Except in unusual market conditions, the oil companies can make those inventories anything they want by importing crude, gasoline and / or distillates. The demand numbers are what's important. Watch the weekly demand numbers by product & the comparison of them to last year. DOE gives a four week average demand comparison to last year. You'll see steady increases. Over time, that's bullish for oil & oil stocks as long as it continues.