Weekly DOE Crude & Product Inventory Analysis 11/10/2010

·         Crude draw higher than expected – Crude oil inventories decreased 3.3 mmbbls last week, much lower than market expectations for a 1.5 mmbbls build (per Bloomberg). Crude oil inventories are now sitting at 364.9 mmbbls, which is 8.1% above last year and 12.5% above the five-year average.                               

·         Gasoline inventories fall more than expected – Gasoline inventories fell 2.0 mmbbls last week, compared with market expectations for a 1.0 mmbbls draw (per Bloomberg). Inventories of gasoline are now sitting at 210.3 mmbbls, which is 0.2% below last year and 4.7% above the five-year average.        

·         Distillates see larger than expected draw – Inventories of distillates decreased 5.0 mmbbls last week, compared with market expectations for a 2.0 mmbbls draw (per Bloomberg). The draw on distillates due to higher demand may be a welcome sign of an improving economy in the U.S. Distillate inventories are now sitting at 159.9 mmbbls, which is 4.7% lower than last year and 16.2% above the five-year average.         

·         Refinery utilization increases slightly – Refinery utilization was up 0.6% last week to 82.4% which is 2.5% above last year and 2.7% below the five-year average.