Oil Falls Further as Huge ‘Build’ is Announced
By: Tim McPartland,
Tonight after a giant sized crude oil price fall today (8%) prices are continuing to fall as the American Petroleum Institute (API) announced a huge build of 7.6 million barrels last week. West Texas crude is now trading down another couple percent after hours. This is almost a huge $5/barrel drop in total.
Only yesterday we warned that the spiking prices of oil should not be used an excuse by individual investors to purchase energy issues–let the thieves and crooks push each other around and don’t be caught in the ‘crossfire’. There are billions and billions of dollars being used to move markets–most the time just based on momentum, not fundamentals. Any excuse will be used by traders to push commodity prices around. We fully understand that preferred shares of Brietburn, Vanguard and Legacy Reserves (as well as others) look awfully tempting, but they are purely speculations–nothing more.
Note that tomorrow we have the Energy Information Administration (EIA) release of their inventory (this is the official number) and if they confirm the API numbers we are heading back toward $40—quickly.