Can the global commodity markets shake off the threats of Chinese rate hikes? Well today they are going to try. Still yesterday the oil markets ignored a very bullish oil inventory report after Chinese Premier Wen Jiabao said that he and the state council were drafting measure to address inflation. This led to the belief that interest rates in China may go up dramatically and curtail that oh so precious Chinese oil demand... Not Even a massive drop in US oil supply was enough to deter the market from going lower.
The EIA reported that U.S. commercial crude oil inventories decreased by a whopping 7.3 million barrels from the previous week. At 357.6 million barrels, U.S. crude oil inventories are above the upper limit of the average range for this time of year. Total motor gasoline inventories decreased by 2.7 million barrels last week and are in the upper half of the average range. Both finished gasoline inventories and blending components inventories decreased last week.
Distillate fuel inventories decreased by 1.1 million barrels and are above the upper boundary of the average range for this time of year. Oil Exports and Low imports and refinery maintenance are the reason for the draws. The strikes in France are still taking a toll on our supply. Bloomberg News China International United Petroleum & Chemical Co., the nation’s largest oil trader, plans to boost diesel imports for a second month in December to ease a domestic shortage of the transport fuel.
China International, or Unipec, plans to import 120,000 tons for December delivery, compared with......
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