INSTANT VIEW 3-US crude, gasoline inventories up sharply

                                
 NEW YORK, Oct 8 (Reuters) - U.S. crude and gasoline
invetories showed a higher-than-expected increase in the week
to Oct. 3, accordint to weekly data from the U.S. Energy
Information Administration released on Wednesday.
                                
 Distillate stocks fell close to expectations. U.S. crude
oil prices tumbled after the release of the data. [EIA/S]
                                
 HIGHLIGHTS FROM EIA REPORT (In million barrels):
                                
 - Crude         +8.1      (forecast +2.3)
                                
 - Distillate    -0.5      (forecast -0.4)
                                
 - Gasoline      +7.2      (forecast +1.1)
                                
 Click here for the EIA status report [ID:nEIA000473]
                                
 Click here for the API status report [ID:nAPI000032]
                                
 ANALYST COMMENTS
                                
 TOM BENTZ, BNP Paribas Commodity Futures Inc., New York
                                
 "Obviously, big build in the crude stocks, up 8 million, a
lot more than expected. Imports are up sharply, that's what led
to the crude stock build. It's kind of surprising because runs
are up so much.
                                
 "Gasoline stocks -- very big build there, I'm surprised at
how big of a build there was there as well. You've got refinery
margins for gasoline, in many cases, they are negative, so
there is no incentive to make gasoline...but demand is down
sharply as well, so I'm sure that's part of it."
                                
 MARK KELLSTROM, ANALYST, STRATEGIC ENERGY RESEARCH, SUMMIT,
NEW JERSEY
                                
 "Obviously inventories are recovering off the back of the
hurricane, and we're rebuilding lost barrels from the last
three weeks. It looks negative for the crude market but
inventory levels are still on the low side, and we would argue
that it's more than discounted in the price of crude oil.
                                
 The other thing to keep in mind, too, is that while some
might point to demand for the build in gasoline, there have
been pipeline related issues for getting the product to the
Southeast."
                                
  TOM KNIGHT, TRADER, TRUMAN ARNOLD, TEXARKANA, TEXAS:
                                
 "Although the magnitude of the stock builds in crude and
gasoline are sharply higher than expected, I find the latest
EIA data showing no particularly big surprise here. People have
been expecting a large increase in refinery runs as well. The
big gasoline stock build has been telegraphed by the cash
markets last week."
                                
  (New York Energy Desk, 646-223-6050)