So Much for Demand Destruction --

Didn't I just use this subject line a few days ago?

Link here to AP news:

Oil prices rose to near $107 a barrel Wednesday after a report showed U.S. crude supplies fell unexpectedly, a sign demand may be improving in the world's largest economy.

The American Petroleum Institute said late Tuesday that crude inventories fell 1.4 million barrels last week, breaking a two-month trend of growing supplies. Analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos., had predicted an increase of 2.1 million barrels.

Inventories of gasoline fell 1.4 million barrels last week.

Wow, that Saudi oil can't get here fast enough. 

Saudi Arabia is preparing to extend this year's unexpected jump in oil sales to the United States, adding to speculation about the response of the world's top oil exporter to sanctions against Iran and a rally in prices.

The kingdom's shipments to the United States have quietly risen 25 percent to the highest level since mid-2008, according to preliminary U.S. government data, a sizeable leap that appears at least partly related to the imminent completion of a major expansion at its joint-venture Motiva refinery in Texas.

And, of course, the drop in gasoline inventories comes on the heels of the report that three refineries in the Philadelphia area are scheduled to close. Refiners can't make a profit: oil costs too much and the costs are difficult to pass on to the consumer. That's because there's so much competition: with four service stations on most major urban intersections, one can always go to the service station with the lowest price, like $3.79 vs $3.83. On a 12-gallon fill-up, one could save .... thinking .... calculating ... 48 cents.

By the way, back to the linked story: the most common three words I see in business news these days are: analysts, rise, unexpectedly.

The next most common three words: analysts, fell, unexpectedly.

We either need new analysts or new words.