As we approach 12/31/10 and the final inventory of the year, refiners are paying close attention to inventory levels because of the LIFO rules and inventory layers and all the other tax valuation issues. Consequently, inventory has been drawn two weeks consecutively. Some analysts see this as positive signs that the economy is improving and demand is increasing. However, the housing sales numbers are half what they were forecast to do. At best And with the holiday season, many analysts have already taken off for the year and the number of trades are lower so that any movement seems bigger than it is. Nevertheless, crude has risen 3.9% in a week. Gasoline is already $3/gallon in some markets.
For the week (short week due to the Christmas holiday), crude +$3.46, $91.48; gasoline +12.12¢, $2.439; distillate +1.12¢, $2.5408.
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