Last week, the EIA inventory report showed a larger than expected draw in crude inventories. But it sold off because distillates and gasoline inventories surprised the market with very large builds. Remember crude, heating oil, and gasoline will take the same direction so you can't only focus in on the crude inventory number. this week's EIA data. We still haven't seen that test of the important $73 level. I'd be surprised if this data triggered that move, we'd have to see a pretty big draw in crude and at least smaller than expected builds in the other two. I don't expect the volatility to be muted ahead of FOMC but it's possible.
We must learn who is gold, and who is gold plated