Oil prices dip less than expected

Yesterday’s EIA data delivered a mixed bag with crude stocks falling less than expected and a larger build in distillates.

The focus however was on a large drop in gasoline stocks - some 3.5mio bbls rather than the small rise expected. This was significant given the bearish motoring data issued earlier in the week suggesting that US drivers had responded to the higher price of gasoline by reducing their mileage. This had given impetus to the bearish move towards $120 in previous sessions. The market focused on the gasoline number and rose by around $4. Brent crude begins today around the $126.80 region.