Distillate Supplies Continue to Soar

- The EIA announced a 2,887,000 barrel crude drawdown versus estimates of a 550,000 fall. Gasoline inventories rose 4,519,000 barrels versus estimates of a 1,725,000 build. Distillate supplies rose 4,862,000 barrels versus estimates of a 2,125,000 increase. Refinery utilization fell .06% versus estimates of unchanged.

BOTTOM LINE: The energy inventory numbers are very bearish for the energy complex considering a distillate shortage had been anticipated earlier in the year, however fear over Iran and new year inflows may temporarily cushion an otherwise more serious decline in oil.