The government was out this morning with its latest oil inventory numbers. Not that U.S. inventory numbers have had THAT much to do with the latest run-up in the price of oil – but clearly a surprise on the upside would normally cause traders to back off a bit — and that is exactly what we are seeing in the markets this morning.

U.S. crude inventories rose more than expected, up 6.2 million barrels to 311.6 million barrels for the week ending March 7, the Energy Information Administration reported on Wednesday. analysts surveyed by Platts had expected an increase of only 1.6 million barrels. While gasoline supplies rose by 1.7 million barrels in the latest week, distillate stocks fell by 1.2 million barrels. Distillates include jet fuel — so that is not necessarily good news.

As I post this, a barrel of crude is now priced at about 107.55, down about 1.20. Not a lot to get excited about but at this point, we’re happy for any decline.