Crude Slightly Higher
Posted on: Jan 29th, 2009 | By Doug Casey | Filed under Financial News
In the energy market on Wednesday, oil staged a mild rally, with crude for March delivery closing at $42.16, up 58 cents. March reformulated gasoline was 7.5 cents, to $1.1835/gallon.
In its weekly inventory report, the Energy Information Administration said that crude stocks shot up 6.2 million barrels, to their highest level since August 2007. That was nearly twice expectations.
Gasoline supplies fell 100,000 barrels, the EIA said, while distillates were off by 1 million barrels. Refinery utilization was at 82.5% of capacity vs. 83.3% a week ago.
Traders overlooked the supply glut in favor of optimism over the Fed’s outlook for a recovering economy later in the year, leading James Williams, of WTRG Economics, to remark that, “It’s a good example of the way this market has been trading for some time, up with good economic news and down with the bad.”
However, Williams added, “The reality is that in the short term the Fed decision will have little real impact on oil consumption.”
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