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Elliott Gue, 04.23.08, Weekly Oil Inventory Report
A Business News survey showed expectations for a 1.5 million barrel build in crude oil inventories in the US but we actually got 2.4 million barrels. It was a little higher than expected.
Crude oil inventories were released yesterday and natural gas today. Crude rallied yesterday in the wake of the report despite the fact that oil inventories actually rose much further than expected.
There were two bullish aspects of the report. First, gasoline inventories dropped about twice as much as had been expected. And secondly, the demand figures released as part of the report suggest that there hasn't yet been much demand destruction in the US despite the slowing economy and high energy prices.
The trends in the report are broadly bullish for the beleaguered refining industry. I do think we'll see a seasonal surge in this group into May, though I have some longer-term concerns with respect to the industry.
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