Crude Stocks at Highest Level Since July 2008

US crude inventories escalated by 7.2 million bbl and stood at 346.1 million bbl in the week ended January 30th. The slip in crude contracts was initially thought to be because of the build up in inventories but some analysts are of the opinion that it was because of the fall in the Dow Jones Industrial Index and not the inventory build up. The push in inventories marked the sixth consecutive increase pushing crude stocks to the highest level since July 2007. Gasoline inventories increased by 300,000 bbl to 220.2 million bbl in the same period, while distillate fuel inventories fell 1.4 million bbl to 142.6 million bbl (OGJ Online, Feb. 4, 2009)

OPEC is planning a further 500,000 b/d cut if oil prices don't stabilize around $50/bbl soon.