Oil Down to $125

Investors who were initially jittery about the near 9 million barrel drop in the US crude inventory have changed their tune. After oil retreated more than $4 to end a little under $127 yesterday, light sweet crude is trading near $125 in electronic trading today. The unexpected drop in the US inventories was decided to be an aberration. Investors see the data on weakened demand as the more important indicator.

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