Results

The Bears continued their winning streak on Tuesday in the Fuel Markets as demand remained in center focus. In the first sign of demand troubles, the US Census announced a 1.1% decline in retail sales versus June. Analysts had projected a 0.3% decline. The second warning sign came from the API who reported Crude inventory declined 1.2MM barrels which was less than inventory forecasts for the EIA’s report and suggests fuel demand is softening. The S&P Platts survey expects the EIA’s Wednesday report to show Crude to drop 3.1 MM barrels, Gasoline to decline of 2.3MM barrels and Distillate stocks to rise by 700K barrels. While the API inventory declines are less than forecasts, they are still declines. Supply still plays its part in the equation, so the Bulls are not dead yet.