Traders are not in hurry to buy, as we seem to have sufficient supplies plus mild weather.
It is difficult to sell off actively because there is a lingering fear that if something should happen to refiners or a cold spell hits, it will immediately tighten supplies.
Iran and Nigeria could both be big problems. If Iran is punished with sanctions, then the market will go much higher.
The market is focusing on weather, which is softening product demand everywhere in the Northern Hemisphere, not just the U.S. Northeast.
It's clear that the weather in the US north-east will remain much warmer than normal and reduce heating demand sharply.
At $67, we have started seeing indicators that suggest oil prices might be weighing on demand growth.
The increase in commercial crude (stocks) came as a surprise.
Most likely the market will test $70 again because we have not seen improvements in Iran and Nigeria.
The market has dropped because of forecasts for higher temperatures. People are buying and selling based on weather forecasts.
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