Weekly Oil & Natural Gas Inventory Reports, 4.3.08

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. I believe 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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YouTube | April 3, 2008

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