Oil Price should rebound this afternoon

[dan_s]

The crude oil complex traded lower throughout the morning hours, pressured by weakness in outside markets and uncertainty surrounding US budget negotiations. January crude oil sold off nearly 2% and toward the $85.00 area as equity markets plunged and the US dollar rallied. This morning's EIA data showed an unexpected draw in crude oil stocks last week of 347,000 barrels. Crude oil imports for the week stood at 8.118 million barrels per day compared to 7.768 million barrels the previous week. The refinery operating rate was up 1.1% to 88.6%. January crude oil prices rallied on the inventory data, as well as a positive reversal in outside market sentiment following a favorable tone from US House Speaker John Boehner. January RBOB prices came under added downside pressure following EIA data that showed a much larger than expected build of 3.865 million barrels. EIA distillate stocks fell 800,000 barrels.