Crude inventories fell by nearly 10 million barrels but there was a build in gasoline and, surprisingly, distillate inventories. The year end valuation of inventories approaches since most of the industry uses LIFO and refineries were probably producing as much of product as could be forecasted to be profitable thus draining crude and building product. The futures gains for crude and products were quite modest signaling a market understanding of the accounting moves by refiners.
Today, crude +21¢, $88.62; gasoline +1.03¢, $2.3092; distillate +1.5¢, $2.4835.
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