Oil Touches $112 a Barrel on Surprise Draw Down

Oil inventories reported a draw down of 3.2 million barrels versus an estimated 2.2 million barrel increase in crude inventories for last week. The result has been oil racing upwards, briefly touching $112 a barrel and retreating near $111.70. The unexpected draw down, in connection with the higher than expected inventories reported earlier this morning, has driven the markets down about 80 points. Market breadth is decidedly negative so far with the NYSE and Nasdaq volume declining at a 3 to 1 rate.