DOE Very Mixed Oil & Gasoline Inventories and Refining Data (USO, UGA, PSX, VLO, OIH)

Even gasoline inventories fell by 1.724 million barrels to 201.8 million barrels.  This was a much larger drop as Dow Jones was looking for a build of 600,000 barrels and we were hoping for a flat number. United States Gasoline (AMEX: UGA) is up 1.1% at $48.16 on the day but on very light trading volume.

The refining capacity remains very high at 92.0%, up from 91.0% a week earlier and versus a Dow Jones target of 90.9% expected.  This continues to show upside as refineries seem to be in the profitable zone for refining operations now that oil prices are lower again. We are seeing a mixed bag on two of the refining leaders: Phillips 66 (NYSE: PSX) is down 0.4% at $33.34 and Valero Energy Corporation (NYSE: VLO) is up 0.3% at $22.35.

The oil and gas services companies are finding a mixed bag so far even though the ETF ticked up after the inventories report.  The Market Vectors Oil Services ETF (AMEX: OIH) is up $0.02 at $35.29 this morning.

JON C. OGG