By Sumit Roy, Wed Oct 20 23:01:00 GMT 2010 
Inventories
The Department of Energy reported that in the week ending October 15th, 2010, U.S. crude oil inventories increased by 0.7 million barrels, gasoline inventories increased by 1.1 million barrels, distillate inventories decreased by 2.1 million barrels, and total petroleum inventories decreased by 2.0 million barrels.
This latest report arrested a three week trend in which the total petroleum surplus had been declining. The surplus to the 5-year average now stands at 96.769 million, or 9.3%, up from 9.2% in the prior week. Four weeks ago the surplus peaked at 10.7%.
Crude oil inventories increased more than is typical. Crude oil inventories have been remarkably stable over the past few months, displaying very little in the way of the seasonal fluctuations that we would typically expect. The surplus to the 5-year average stands at 38.045 million barrels, or 11.8%, up from 11.6% in the prior week.
Product inventories diverged with gasoline inventories increasing counter-seasonally, while distillate inventories decreased more than normal. In the bigger picture, we have seen product inventories trending lower after rocketing to multi-decade or all-time highs. There remains an overcapacity in the refining sector, however, thus product inventories should remain ample. The gasoline surplus now stands at 9.6% above the 5-year average, while distillate inventories are 22.6% above the 5-year average.
Demand
Demand remains weak and below the levels of last year. Clearly the economic slowdown in the United States is taking its toll on petroleum demand, as over the last four weeks total petroleum demand has been down 0.5% from the year ago period. This is in contrast to much of this year when demand was up year-over-year. Over the same four-week period, gasoline demand is down 1.4%, and distillate demand is up by 9.3%.
Imports
Imports bounced from the depressed levels of last week. Crude oil imports increased by 0.5 million barrels last week. Over the last four weeks, imports have averaged 8.7 million barrels per day, 0.4 million barrels per day below the year ago period.
Refinery Activity
Refinery utilization increased to 82.5% from 81.9% in the prior week. Utilization is slightly above the levels of last year, but below the 5-year average. Gasoline production rose a notable 0.3 million barrels per day last week.
Miscellaneous
U.S. crude oil production was little changed week-over-week. Year-to-date oil output is up 3.8% from the year ago period.
Inventories at the NYMEX delivery point, Cushing, Oklahoma fell over 1 million barrels last week. Front month calendar spreads are little changed from last week at -0.72.
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Wed Oct 20 23:01:00 GMT 2010
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charts with strategy trader - prepared created by John Rivera the GBP/USD tests trend-line support started, their recent slow decent and could generate a period of consolidation. Threatening event adds the case for subdued volatility go forward and dealer should wait to recognizable patterns develop enter indentify targets and leave positions. 
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Chart generated using FXCM Strategy Trader Commodities - Metals Gold Suffers a Potentially Trend-Ending Plunge in the Biggest Drop in Over 3 Months Spot Gold - $1,332.05 // -$36.40 // -2.66% After two months of an impressive but restrained advance, gold started to show the symptoms of volatility in October. Initially this enhanced level of trading activity fell in line with the prevailing trend; but higher volatility also exposes a market to a quick reversal. And, we would get just such a break through Tuesday’s session. With this past Monday and Friday’s performance, the argument of a curbed advance could be made; but there was little debating the meaning of yesterday’s development. The 2.7 percent decline was the biggest decline for spot gold since July first – well before the remarkable bull trend set in. More important than the open to close change is the fact that the metal has broken the rising trend that had accelerated its climb back on September 14th. Now traders must ask themselves whether this is the mark of a true reversal or simply an overdue correction to shake out nonbelievers. It is early to call a true reversal on gold; but fundamentals can clarify investors’ intentions. What is particularly meaningful in Tuesday’s developments is the high correlation across the various asset classes. Not only did gold mark a sharp retracement; but equities slid, the US dollar rallied and crude fell. This is an important mix that closely reflects the consistent flows between high yield (risky) assets and safe havens back during the 2007-2008 financial crisis period and the subsequent recovery period. Confidence in yields and nascent growth were shaken through the session first by the news that China’s central bank had raised its benchmark lending and deposit rates for the first time in three years. What effect does this have on global financial markets? Such an effort to curb expansion (and indirectly expected returns on the country’s investments) lowers the potential for capital performance in one of the world’s best performing economies and markets. If China believes growth trends are overleveraged, speculators are the ones that have passively fed the obligatory advance. What’s more, today’s drop in risk appetite persisted through a round of Fed commentary that not only supported stimulus expansion but further offered details on the approach. It seems this eventuality is more or less priced in; and there is growing skepticism surrounding its effectiveness in supporting growth and investment. Given this mix, it may seem surprising that gold – a traditional safe haven – would fall alongside equities. This development is a factor of the dollar’s strong performance. A lot of investment has been made on leverage given low market rates. However, there is still a heavy fundamental argument to be made in gold’s safe haven appeal which could keep the metal’s trend. For trading activity, it is interesting to note that the CBOE volatility index showed a jump in response to today’s trading level; but it wouldn’t rise above the high from two weeks ago. Furthermore, the 243,671 contract turnover (while an 82 percent increase from Monday) was still below Friday’s high for the December futures contract. Spot Silver - $23.37 // -$0.96 // -3.93% With risk appetite sliding and gold tumbling, there was little for silver traders to fall back on. Speculative efforts to close a perceived value gap between gold and silver has contributed to the latter’s aggressive run; so when this trading interest is undermined; we are left with the biggest daily loss since July 1st. That being said ETF holdings of silver rose to a record 459.1 million ounces. Spot Gold Chart (Daily) 
Chart generated using FXCM Strategy Trader Discuss gold and oil trading with other traders in the DailyFX Forum Written by John Kicklighter, Strategist To receive John’s reports via email or to submit Questions or Comments about an article; email jkicklighter@dailyfx.com 
charts created using FXCM's strategy trader GBPUSD: after testing 1600, the GBPUSD quickly reversed course and broke below both the 10 and 20-day SMA's. In fact, the pair sees poised to close below the latter which is important because has served as a moving average support since mid-September. All in all is facing couple downside risks towards 1.5600 with a pause in exposing 1.540.It is also worth noting, messages, understanding that our speculative sentiment index to 1.81 and signals for more declines stands for more technical analysis visit of the DailyFX technical page written by Michael Wright, currency analyst to receive future articles via email, please contact me under mwright@fxcm.com Michael Wright author FX vs. technical of intraday trading, Forex trading weekly forecast weekly spotlight
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