Crude Oil Breaches USD72/Barrel As Stocks Fall

Crude oil broke through the USD72/barrel mark this morning, to hit its highest levels since October 2008, after the US Energy Dept. said that US inventories fell by a surprising 4.4 million barrels last week.

This was well above market expectations of a 100-400,0000 barrel draw down. US gasoline stocks fell double what was expected and distillate inventories also declined.

Meanwhile Chinese purchases rose to a 14-month high in May, of 3.9 million barrels/day, other data revealed. Chinese imports during May were also the second highest in record, up 5% from a year ago.

For the bulls to get this market going again they need some input on the demand side, it seems that China, with its massive spending on improving its infrastructure, might be providing it.