Today’s EIA weekly petroleum report showed a recovery in US crude oil supplies but further drops in gasoline inventories. A large increase in crude imports triggered one of the largest weekly crude gains (9.4 million barrels) this decade. The gasoline scene has shifted stock levels from way above average to way below average in four quick weeks. Distillate inventories are slightly above average and propane below average. Gasoline demand reduction remains the theme of 2008 and may allow oil prices to fall back toward what may be developing as a floor around $110 per barrel.
On the supply side, Libya had a storage tank fire which is slowing its output almost (more…)