Results

Wednesday was day two of a beatdown by the Bulls in the Fuels market. The EIA released their inventory stats where Crude and Gasoline were reasonably close to consensus expectations. However, Distillates showed a 3.3 MM barrel decline which was materially larger than analysts had predicted, and implied US demand for Gasoline was very strong in the EIA’s numbers. Elsewhere, the US Federal Reserve held interest rates at near zero while warning of potential inflation. The threat of inflation lures traders into the commodities arena lending aid to the bulls.