Oil also struggled about after an Energy Information Administration supply report was more supportive that the American Petroleum Institute version but still short of more bullish market expectations. The EIA reported that crude oil inventories fell by a less than expected by 1.9 million barrels, but it's still the third draw in a row. They also reported a big draw in Cushing, Okla. Gasoline inventories fell by a less than anticipated by 0.3 million barrels last week but was a big build in Distillate fuel inventories that rose by 3.8 million barrels that set the bearish tone after the report. The EIA pegged total commercial petroleum inventories increased by 7.4 million barrels last week.
Demand as measured by total products supplied over the last four-week period averaged over 19.9 million barrels per day, up by 4.3% from the same period last year. Over the last four weeks, motor gasoline product supplied averaged about 9.3 million barrels per day, up by 1.1% from the same period last year. Distillate fuel product supplied averaged over 4.0 million barrels per day over the last four weeks, down by 1.6% from the same period last year. Jet fuel product supplied is up 7.8% compared to the same four-week period last year.
The EU says that the recent violence in the Ukraine is the most serious violation of the Minsk ceasefire yet. Stay tuned.
Dow Jones point out that the World Food Price Index fell 1.4% from April and they are saying that global food price costs are at the lowest level since September 2009! Years of record crop production as well as the recent strength in the dollar helped 2009!
Bill Gross correctly predicted that German Bunds were the "short of a lifetime." Now he is saying shorting Chinese stocks may be the short of a lifetime. How many lives does Bill Gross have?