DoE Inventory Blowout : Oil Use/Demand is Picking Up (USO)

November 10, 2010 12:45 pm

Over the course of the past few years, it has been difficult to see through much of the “speculation” that has a played a part in the rise and fall of the price of oil.

Now, as the price is rising again, part of the blame is due to the QE2 program/falling dollar, but emerging markets are playing a key role as well. Clearly demand is up and that shows through this week’s inventory data:

VERY BULLISH DOE REPORT

  • Crude oil inventories had a draw of 3,274K (consensus is a build of 1,500K)
  • Gasoline inventories had a draw of 1,917K (consensus is a draw of 1,000K)
  • Distillate inventories had a draw of 4,972K (consensus is a draw of 2,000K)
  • The change in refinery utilization was +0.60% (consensus was 0.00%)


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