October 21, 2009

The significant decline of gasoline inventory pushed crude and product futures higher. Gasoline inventories recorded a tripling of the expected draw while crude supplies rose and distillate experienced the estimated draw. The fall in gasoline inventory is not attributed to rising demand but rather the decrease in refinery production and lower imports. Demand actually fell 1.4% last week and was the lowest in 5 months. The falling dollar is also given consideration in crude's rise.