As predicted, inventories are up again

The latest petroleum status report is out from the US Energy Information Administration and it seems to confirm the suspicions of inventory building again.

The report here seems to confirm also that there's more than enough increase in overall supply and that there's no reason why prices should stay elevated like they are. But an official from MF Global, vice president Michael Fitzpatrick, seems to think we're into a downturn now and predicts that we'll see oil slide to $70 US a barrel before July 4th.

All the fundamentals, excess supply in the markets, stagnant demand numbers and ongoing economic and fiscal worries in Europe, and we still aren't seeing a drop of significance to oil prices NOW rather than LATER.

Why is that?

George