Cameron Hanover – Daily Energy Hedger – September 10, 2010

The buyers were out this morning, and they reacted to a DOE report showing draws across the board as being bullish. That was buttressed by higher equities prices and by a weekly unemployment figure that was better than had been forecast. But, as traders dug more deeply into the weekly supply and demand statistics, they were left with the unalterable conclusion that there is a huge amount of oil being held in stocks right now. Prices initially reached an intraday high of $75.96 a barrel, but they faltered below $76.00 and could not break above that level. Compared to two years ago, this week’s DOE report showed a large increase in inventory levels.