If you read my US Oil inventories post you would notice that I had only 2 sentences about weekly Oil report.

Everything else was about the the developing trends related to global recession which some call a global depression.

I am not sure why this is a bad news? It is a very good news for the economy (read Brian posts).

It is obvious, like you said, that the weekly numbers are not important and should not be a part of your investment strategy.

What is important is the trend. We are talking about 19 years high.

Crude stockpiles in the United States are now about 17.2 percent above their level at the same stage last year, and remain at the highest level since September 1990.

OPEC spare production capacity is over 7 millions bbl/day

I will just add. that China`s crude oil imports fell by 10.2% in Q1 due to the weak domestic demand and execs of the inventories. They become the net exporter of fuel.

http://www.chinamining.org/News/2009...

http://agoracom.com/ir/Connacher/for...

If you look at the CLL latest presentation you may notice that CLL balance sheet is being reassessed in the context of WTI oil at $US50/bbl.

If this DEMAND/SUPPLY situation continue for another 6 to12 months O&G junior producers with high debt to cash flow ratio will not be able to continue their operations without consolidation with major producers.

I have a feeling that you would agree that this is important factor from the investment strategy point of you.

Another important factor is the relation between the US$ and commodity prices. This may wait for the other thread.