Energy Data Fuels Profit-Taking
By: Surprising energy data sent oil prices into negative territory Wednesday morning. Bruno Stanziale, a principal in commodities sales for Bank of America, provided his analysis on “Morning Call.”
“You’re probably going to see a bit of profit-taking with this number, and I expect a bit of the same next week,” Stanziale said, after the government reported that U.S. gasoline supplies rose 1.7 million barrels last week.
Stanziale is bullish: "We saw this huge acceleration in demand from 2003 to 2005 -- it leveled off.” He added, “Now, we’re returning to historical norm growth rates."
While imports boosted inventory levels last year, Stanziale explained, Americans shouldn’t count on them too much in 2007: “It’s a different world,” he said. “You have a lot of parts of the world that are now importing. We need production in the States.”