Highlights
In news that is certain to ignite new buying in oil, inventories of crude oil plunged 5.3 million barrels in the Oct. 19 week to 316.6 million. Distillate inventories also fell, down 1.8 million in the latest week to 134.5 million -- a result certain to feed talk that inventories are too low going into the heating-oil season. A drop in gasoline stocks rounded out the news, down 2.0 million barrels to 193.8 million. Behind the drop in gasoline and distillate stocks are low operating rates at refineries which operated at 87.1 percent of capacity during the week, down from a usual rate of about 90 percent. Despite the weekly headlines, total inventories are actually quite heavy with crude and distillate inventories well above average, facts that may be overlooked in the oil markets.