Highlights
Oil prices are moving higher following a big 4.0 million barrel draw in oil stocks during the Oct. 30 week. Draws were also posted for products, at 0.3 million barrels for gasoline and 0.4 million for distillates. The product draws are tied to very limited output at refineries which operated at a very low 80.6 percent of capacity. The crude draw is tied to a drop in imports, at 8.1 million barrels per day for a decline of more than 750,000 mb/d. A negative in the report is declining gasoline demand, at an average 9.0 mb/d over the last four weeks vs. 9.1 mb/d and 9.2 mb/d in the prior two readings. The headline draw is sizable but the global oil glut remains. Oil jumped nearly $1 to $81 in immediate reaction to the results before edging back $80.75.