DOE report was just released… Highlights:
>Crude oil inventories dropped 8 million barrels. However, they are still in the upper half of the average range for this time of year.
>Gasoline inventories rose 4 mllion barrels. However, they are still below the lower end of the average range for this time of year.
>Distillate inventories rose 1.4 million barrels. However, they are in the middle of the average range for this time of year.
We’ll see what happens to the market. I believe we might see prices drift higher. It seems there is more emphasis on oil today since OPEC decided to keep their production unchanged, AND we saw stockpiles take a tumble. The only thing: will gasoline follow even though we had a huge build? Not likely. Looks like refineries are starting to increase their production of gasoline and that we may start to build inventories.
Keep a close eye on the oil market today. I still don’t think we’ll see a gas price hike unless we see gasoline go up 5-10 cents on the market today. We’re still due for lower prices.
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