I found these charts from the Energy Information Agency interesting. The first chart shows a fairly decent increase in oil stocks in June and July. Okay – I know someone out there will quibble with me over my choice of the words “fairly decent.”
On the other hand, the second chart shows a decrease in gasoline stocks.
Now, maybe I don’t quite understand how this works, but if the oil stocks are increasing why aren’t the refineries making more gasoline? Although my observations are simplistic, my question is simply this – if oil stocks are increasing why are gasoline stocks decreasing? Someone is making a decision to hold back the production of gasoline. Wonder who that is?
Just an observation – I have to admit I am not terribly learned in the area of the oil and gas markets. So what do you think?