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Oct crude oil prices this morning are trading -15 cents and Oct gasoline is trading -1.13 cents. Some long liquidation pressure has emerged now that Hurricane Humberto made landfall last night with 85 mph winds but only caused heavy rain and flooding and only temporary disruptions to oil rigs, shipping, and refineries in the area.
Oct crude oil prices yesterday rallied $1.68 to a new record high of $79.91 and Oct gasoline rallied 3.49 cents. Bullish factors yesterday included Humberto, a new tropical depression in the east Atlantic, and a bullish DOE report. The market is watching a new tropical depression that is currently about 900 miles east of the Lesser Antilles and that is headed toward the Caribbean.
Yesterday's DOE report was bullish with a sharp 7.0 mln bbl drop in crude oil inventories (versus expectations for a 3 mln bbl drop), which left oil inventories 6.4% above the 5-year seasonal average, the least accommodative level in 4 months.
Meanwhile, gasoline inventories fell 666,000 bbl and are -4.7% below the 5-year seasonal average. Distillate inventories rose +1.8 mln bbl for the eighth consecutive weekly rise and are adequate at 1.0% above the 5-year seasonal average. Oil prices yesterday rose again despite OPEC's decision on Tuesday to raise its production quota by 500,000 bbl as of Nov 1.
Oct crude oil prices yesterday rallied $1.68 to a new record high of $79.91 and Oct gasoline rallied 3.49 cents. Bullish factors yesterday included Humberto, a new tropical depression in the east Atlantic, and a bullish DOE report. The market is watching a new tropical depression that is currently about 900 miles east of the Lesser Antilles and that is headed toward the Caribbean.
Yesterday's DOE report was bullish with a sharp 7.0 mln bbl drop in crude oil inventories (versus expectations for a 3 mln bbl drop), which left oil inventories 6.4% above the 5-year seasonal average, the least accommodative level in 4 months.
Meanwhile, gasoline inventories fell 666,000 bbl and are -4.7% below the 5-year seasonal average. Distillate inventories rose +1.8 mln bbl for the eighth consecutive weekly rise and are adequate at 1.0% above the 5-year seasonal average. Oil prices yesterday rose again despite OPEC's decision on Tuesday to raise its production quota by 500,000 bbl as of Nov 1.
