Brent crude drops sharply
20/07/2006 - 09:09:39Brent crude dropped sharply yesterday on US EIA data showing an unexpected rise in crude and gasoline stocks.
Momentum carried oil through the $74 level as position-squaring and profit-taking took support form the price.
Closer analysis of the data shows gasoline demand was up nearly 2% from this time last year. Given the fact that the US gasoline demand represents over 10% of global consumption and supply concerns persist, the fundamentals suggest that the bullish trend should resume.
