November 4, 2009

Crude inventory fell 3.9 million barrels, distillate declined 400,000 barrels and and gasoline dropped 300,000 barrels. The tiny uptick in crude futures to $79.80 and the equally small decreases in gasoline, 0.75 cents, and distillate, 0.12 cents, actually demonstrates that traders and analysts are worried about the economy, unemployment and demand deterioration, but now knowing that refinery utilization fell 1.2%. Earlier in the day, upbeat economic data was released and the dollar weakened but it may be that supply and demand fundamentals are now foremost in people's awareness.