Oil drops despite large US inventory draw

<p>WTI crude oil is at the lows of the day, down $1.62 to $72.49.</p><p>The Boxing Day rally has now been completely wiped out and crude is lower on the week.</p><p>The drop in oil comes despite a bullish weekly oil inventory report that showed:</p><ul><li>Crude -7114K vs -2704K exp</li><li>Gasoline -669K vs +208K exp</li><li>Distillates +741K vs +600K exp</li><li>Refinery utilization +0.9% vs +0.2% expected</li><li>Production mbpd 13.3mbpd vs 13.3mbpd prior</li><li>Implied mogas demand 9.17 mbpd vs 8.75 mbpd prior</li></ul><p>Oil is in danger of falling to the lowest since Dec 18. A lower weekly close would also end a streak of two small weekly gains that had followed an eight-week losing streak. The market isn't too concerned about the Red Sea, it seems.</p>

This article was written by Adam Button at www.forexlive.com.