Speculation that the earlier price increase was not supported by the pace of economic recovery lead to a drop from a two week high in Oil.
After a U.S. Energy Department report yesterday showed supplies of diesel and heating oil fell to their lowest since April 2009, futures reached their highest since May 11 earlier today. Inventories of gasoline increased by the most since February. U.S. durable goods orders fell more than forecast in April, as reported by the Commerce
“Yesterday’s data was more bullish for products than for crude, but still not bullish enough to say that fundamentals are tight,” said Gerrit Zambo, a trader at Bayerische Landesbank in Munich. “In the last weeks we’ve seen macroeconomic data worse than expected. The oil demand-supply situation is relaxed, and there’s no danger of any shortage.”