Today's inventory number was worse than we expected especially in light of recent offshore inventory builds. If you take out the large draws in propane due to high farm usage, overall stocks were down 1 M barrels which is not particularly bullish. When one considers the 10M bbls of inventory that has been added to offshore stocks in recent weeks, this actually paints quite a bearish picture for what has been a cold January.
While, crude is at support and the chart/technicals are supportive we are not comfortable being long at this point with inventories building and uncertainty about conditions in Europe leading to possible strength in the dollar.
We will let our readers know when we are comfortable getting bullish again.
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