Oil Prices up Despite Crude Buildup

This is just more of the same regarding oil prices.

It was a volatile day for energy prices, which initially retreated after the U.S. Energy Department said a big gain in imports drove crude inventories up by a hefty 9.4 million barrels in the week ended Aug. 15. The figure came in much higher than the average analyst forecast for a 1.7 million-barrel increase, according to energy information provider Platts.

So this means there was 7.7 million more barrels crude oil imported then economists forecast? That must be the easiest job in the world to say oil imports should increase by 1.7 million barrels and whoops we were just off by 7.7 million.

In any case this would seem very bearish for oil since refinery utilization has also dropped from 85.90 to 85.70. It was true that gasoline inventories shrank by 6.2 million barrels so that should prop up the price for a while in hopes that all that extra crude will go to replace that gasoline "shortfall."

I love the supply concerns that AP sites in their article as well. They chalked up the higher price to Russia not honoring the ceasefire which did not come close to touching those Georgian pipelines. Then they say thunderstorms in the Atlantic *might* cause more tropical storms that *might* cut Gulf of Mexico production. Finally, they finish it all up with Venezuela *might* vote to lower OPEC quotas while the OPEC President has said that prices above $120 are abnormal. OPEC knows that they don't want prices too high because it kills demand.