Right now the perception is that Oil can go no where but up so people are piling into the market because it appears to be easy money.
This is NOT CORRECT because as I have shown speculators are NET SHORT.
All of this is taking place when oil inventories are higher then they have been in years and where demand for Oil in the US had dropped 4% over the last year.
This is NOT CORRECT inventories have been falling for 2 months
Crude inventories were up by a relatively minor 800,000 barrels; however, the markets had expected a 1.7 million barrel drop. This was the first increase in US crude stocks for nearly two months and the news sent prices down by $4 a barrel before recovering. Distillate fuel inventories increased by an unexpectedly large 2.8 million barrels and are back to the middle of the normal range for this time of year
