Oil inventory build should send oil prices tumbling

The EIA this morning reported a larger than expected oil inventory build of 5.7 million barrels. This compares to the 729,000 barrel build analysts expected. Oil prices should fall for a few days on this news. DWT, an inverse leveraged oil fund, is a good way to play.

Comment:

I just remembered that we've got a Fed interest rate decision in a few hours, which could change everything. The market seems confident that a rate cut is coming, which could push oil prices back up and counteract the effects of the EIA report. Personally, however, I am skeptical that the Fed will cut rates. If we don't get a rate cut, then oil prices will definitely fall and it will be a really good day for DWT.