ESAI Fundamentals Update - 10.15.09
MODERATELY BULLISH
SUMMARY: Refinery runs plunged by 725,000 b/d this week, helping to boost East of Rockies inventories by three mil‐ lion barrels. Gasoline and distillate inventories both fell very sharply, primarily in response to these lower throughputs. Although absolutely stock levels remain strong, these draws will likely generate bullish pressure for prices in the coming week. Stronger economic news is also boosting prices, with strong earning results on Wall Street boosting the Dow over 10,000 points. The continued plunge in the dollar has helped push WTI prices well over the $75 per barrel resistance level. Prices should ease eventually as cooler heads prevail, but this week looks to be quite strong.