The markets are bracing for Thursday's DOE reports, with traders cringing since the recent (supply) trends have been bearish.

Despite the surprise 1.3 million-barrel drop in DOE crude stocks for last week, inventories in the market remain near April 1999 highs.

They can continue to pump away and ring the cash register, ignoring the looming Q2 supply/demand surplus just like everyone else.

The threat to supply disruption is keeping traders edgy.

We can't extrapolate national trends from Manhattan markets.

We are pleased to note that the recent run of strong data in Australia has seen markets lower that probability to only about 15 per cent.