What's Moving the Oil Markets?

•Global crude futures fell slightly Wednesday ahead of the US inventory data due out later in the day, withdrawing from the highs posted late Tuesday on the back of a surge in product prices. "The market is really dead at the moment. We're leading up to the long US Thanksgiving holiday as well as the US stats this afternoon so we're essentially waiting for them," a London-based broker said.

•Market players said that crude market data, unless extreme, would not provide direction to the market, which instead is more likely to come from the refined product data.

•Expectations are for a 475,000 barrel draw in gasoline stocks for the week ended November 17. Analysts also forecast a 675,000 barrel decline in distillate inventories, which would continue to support heating oil futures despite moderate near-term temperature forecasts. "I have a feeling the distillate draw could be bigger than expected and I think the market will be very active this afternoon," a broker said, noting that NYMEX will be closed Thursday and Friday for the US Thanksgiving holiday.

Updated: 11/22/07