The market is focusing on weather, which is softening product demand everywhere in the Northern Hemisphere, not just the U.S. Northeast.

The market is reacting the most to the gasoline waiver in Bush's outline, which is expected to increase the motor fuel supply in the States.

The market has dropped because of forecasts for higher temperatures. People are buying and selling based on weather forecasts.

The increase in commercial crude (stocks) came as a surprise.

Iran and Nigeria could both be big problems. If Iran is punished with sanctions, then the market will go much higher.

It's clear that the weather in the US north-east will remain much warmer than normal and reduce heating demand sharply.

It's China's rate increase that is pushing down the market.

The Nigerian incident is a clear sign to buy. There had not been much similar market-moving news for a while and it's easier to move prices now because volumes and liquidity are low due to the holiday period.

This is expected to become a potential factor to cause supply tightness. Also at the same time, this move could be indicating that domestic demand within China is strong.

The build is quite huge, and that's having an impact on the market today. OPEC has no reason to cut production as long as prices remain near $60.