Commentary by Eric Wilder – The EIA released its latest information today on energy commodities and the news was bleak.  Crude oil in storage declined 4.2 million barrels and the governmental agency reported that U.S. production is now below 5 million barrels of oil per day with 564,000 barrels still shut-in because of hurricane damage.

The Agency predicted that refinery stocks will continue to decline.  This is because the combination of imported oil and U.S. produced oil doesn’t equal the daily amount that the refineries are using to produce gasoline, heating oil and other products.

The U.S. has enough oil in storage to get it through the winter unless the weather becomes more seasonal (colder).  What do weather forecasters think?  In a year that recently saw three of the strongest hurricanes ever recorded, no one is going too far out on a limb.  Meanwhile, crude oil prices are holding steady on the New York Mercantile Exchange but with today’s bleak forecast, expect the trend to soon move upward.

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