UNINFORMED MARKET

US oil inventories declined for the second week in a row. The public is being left in the dark. There has been little if any mention of the decline in shipments from Iran that began around May 5th. Immediately after this mornings announcement, the price of oil went from down $2 to up $1.50. The current price of $132 is close to the all time high. It will not last. The USA can make up the shortfall from our SPR if needed. Using this reserve would cause some excitement but would be a feather in the Bush cap if a deal with Iran followed. The bottom line is that the world can do without Iranian oil for a lot longer than Iran can go without oil sales.