Energy Inventories Down More than Expected For the Second Straight Week

While oil was in the midst of a 10-day losing streak over the last two weeks, its price wasn't the only thing declining.  For the second straight week, the DoE announced that crude oil stockpiles declined by over 3.5 million barrels, and in both weeks the draw-down has been greater than expected.  Today's news has helped to boost the price of oil by over $2.  Crude oil inventories remain well above their historical average for this time of year, but they are near their lows of the year.  For bulls on the Energy sector, inventories are moving in the right direction.

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Comments

[Paco Ahlgren]

I'm still extremely bullish on oil over the long-term; like other commodities and metals, I believe oil will outpace inflationary price increases.

In the short-term, however, I think oil may have a little bit more downside before the smart money prevails and sends it marching higher again.

Here's a video supporting the short-term direction:http://bit.ly/seekingalpha_pacoahlgren_oil

[Rodrigo]

does this include the oil on all the tankers/etc.? Shadow inventory if you'd like to call it?