Crude Wobbles

Crude oil appears to have a bout of the jitters ahead of this week's stocks data. The American Petroleum Institute are expected to set the ball rolling by saying that US inventories rose last week, when they come out with their weekly stocks data later today.

The US Energy Dept. are forecast to follow suit tomorrow, if they do say that inventories rose, then that will be the 11th straight week that they have done so, the first time we've seen such an unbroken stretch of increases since 2004.

The International Energy Agency said today that non-OPEC producers will increase output by 600,000 barrels a day this year to average 52 million barrels a day.

Crude has been quite successfully bucking the trend of increasing stocks and production for some time now, hanging it's hat onto increased Chinese and global demand as economic growth resurfaces.

Can it continue to ignore the reality of what IS happening now, in favour of what MIGHT happen in the future?

As US stocks continue to rise, Brent futures - which traditionally always commanded a small premium - overtook NYMEX crude for the first time in 2010 today.