"US inventories of gasoline, distillate fuels increase" and "China diesel inventories rise to multi-year high as demand slows"

Although the downstream refining business is doing well with low priced raw crude oil, the upstream business continues to be of concern especially with China's slowdown.  I am like most people and would like to have some certainty on the upstream so we can get back to normal production, whatever that new normal will look like.

Oil slipped in New York as further declines in China’s stock market fanned concern that its fuel demand may slow while global crude markets remain oversupplied.

Stocks in China, the world’s second-biggest oil consumer, closed lower to cap their worst five-day rout since 1996. US supplies of gasoline and distillate fuel, a category that includes diesel and heating oil, climbed, an Energy      Information Administration (EIA) report showed. Crude stockpiles declined 5.45 million bbl last week.    

Oil’s decline since this year’s peak in June has deepened to more than 35% amid a global commodities rout. The Bloomberg Commodity Index of 22 raw materials including crude and metals was little changed after rebounding Tuesday from a 16-year low.    

"Concerns about China are the main factor guiding this market," said Adam Wise, who helps run a $7 billion oil and gas bond and private equity portfolio as a managing director at John Hancock in Boston. "We’re paying more attention to the demand side of the equation. This will only change when we get sustained crude supply draws."    

West Texas Intermediate for October delivery slipped 23 cents, or 0.6%, to $39.08/bbl at 11:33 a.m. on the New York Mercantile Exchange. The contract climbed $1.07 to $39.31 on Tuesday, recovering from the lowest close since February 2009. Prices have dropped 27% this year.