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Disanalogeous
We normally start these reports off with a clever analogy to get your attention. As any analogy on the financial mess that has happened this week would only make you more depressed than you probably already are, so I have decided to disanalogeous, which is my new word number seven.
Avoiding the economic data that I am sure you are all familiar with there are a few aspects of the petroleum side of things worth taking note of. The U.S. inventories have been somewhat ignored by the speculators for some time now, with the focus being on the ebb and flow of the global financial markets and the U.S. economy, which has been in long term ebb.
With two weeks left in the driving season the 3.5 million bbl decrease in gasoline inventories is of no concern especially when the inventories are in the upper range of the 5-year average. It is interesting to note that gasoline production and import levels both dropped as well as the refinery runs, which indicates that the oil companies are making every effort to maintain the exceptionally high refining margins they are currently enjoying.
How high are these margins?
By: Roger McKnight, Senior Petroleum Advisor
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