Oil fell on Wednesday, for a second straight session, as a U.S. government report showed larger-than-expected increases in inventories of gasoline and distillates.
"This looks like another pretty bearish report with a large build in distillates and gasoline ... People are not driving as much, it looks like consumers are slowing demand," said Rob Kurzatkowski, futures analyst at OptionsXpress in Chicago.
The drop also coincided with a firmer dollar, which may have reduced the appeal of commodities to some investors, analysts said. The dollar hit a two-week high against the euro on Wednesday.
The move has created a great deal of speculation as to oil's next move.
If you watch Fast Money regularly you know that Joe Terranova thinks the oil market will remain around the $130 mark until after Labor Day. "I noticed that below $130 there was some serious institutional buying," he explains. "That suggests there’s a great deal of support at that level."
Not everyone agrees. Frank D. writes, "Until the situation improves in the Middle East, oil will stay high," and David S. tells Fast Money "I think the recent decline in oil prices are temporary."
And that leads to our Fast Money Reader Poll. Where do you think oil is headed over the next few months?
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