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Market MovementDrop in US stocks tied to overdue transit oil? Click here to enlarge imageDoes the sharp decline in US oil stocks last month ultimately suggest a more bearish reflection of oil markets than a first glance would suggest?The huge drop of 9 million bbl in US oil stocks at the end of July was largely due to a decline of almost 2 million b/d in oil imports that same week, says PaineWebber (see chart). The expectation of added Middle East output also may explain why refiners drew down stocks while gasoline prices are still high."This oil could either be moving into floating storage or other overseas storage facilities. If this is, in fact, true, lower US oil imports could turn o...

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