Crude oil price experienced great volatility after release of the inventory report Wednesday. Shortly after the report, price jumped above 61 but profit-taking was then seen and pressured price to almost 60. However, buying interest emerged again, probably driven by rallies in stock markets and weakness in USD amid better macroeconomic data, and pushed price to as high as 62.01. The benchmark contract ended the day at 61.54, +3.4%. With the exception of natural gas which plunged -4.3% to 3.28, others in the energy complex rose with gasoline and heating oil surging +3.7% and +4.6% to 1.71 and 1.58, respectively.

Although the US Energy Department recorded a higher-than-expected decline in crude inventory by -2.8 mmb last week, the overall report revealed a neutral, rather than bullish, outlook on energy market as both gasoline and distillate stockpiles continued to rise. Refinery run remained at high level of 87.9% despite dismal demand in oil products as high margins continued incentivize producers. Although demand for distillate rebounded modestly and yields edged lower, it's observed that there's pickup in jet fuel yields. The potential surge in stockpile in jet fuel in coming weeks made the inventory problem in the distillate market unresolved.

Stock markets rallied after the US released encouraging economic data. In the minutes for June's FOMC meeting, the Fed revised up economic outlook for 2009 to 2010. The central bank now forecasts real GDP will contract -1.5% to -1% in 2009, compared with April's projection of -2% to 1.3%. In 2010, GDP will expand +2.1% to +3.3% , compared with previous forecasts of +2% to +3%.

Industrial production dropped -0.4% in Jun, compared with consensus of -0.6% and -1.1% in the prior month. Empire State manufacturing index improved to -0.55 in July, compared with market expectation of -5 and, from -9.41 in June. Moreover, Goldman Sachs Group reported earnings of $3.4B in the 3 months ended June 30, +65% from the same period last year. The result beat analysts' forecasts and drove Goldman's share and the stock market higher. Dow Jones Industrial Average and S&P 500 Index jumped +3% to 8616 to 932.68, respectively.

Today in Asia, stocks advance further after China reported GDP growth of +7.9% in 2Q09. The outcome was higher market expectation of +7.8% and +6.1% in 1Q09. The MCI Asia Pacific Index soars +1.2% while most benchmark indices within the region jumped more than +1%.

Precious metals surged as USD weakened. The gold futures gained +1.8% to 939.4 while silver added +2.75 to 13.21. Apart from improved risk appetite that shifted investors' capital from USD to other assets, US' CPI data also spurred higher inflation expectation which in turn triggered demand for gold. CPI rose +0.7% mom in June, higher than +0.6% in consensus of +0.1% a month ago. On annual basis, the reading contracted -1.4% following the -1.3% decline in May. However, the contraction came in less severe than market anticipation.

PGMs rallied with platinum and palladium gaining +2% and +1.9% to close at 1157.9 and 248.4 Wednesday. We believe better car sales in Europe helped lift prices. According to the European Automobile Manufacturers Association, the market for new passenger cars in Europe rose +2.4% yoy to 1.45M units in June, the first monthly increase in European sales in 14 months. The association believed it's driven by the 'fleet renewal scheme' in more than 10 EU member states.