US inventories, both crude and gasoline, are up by several measures. Apparently the market’s previous concerns over US production glitches following Katrina and Rita were at least somewhat overstated, especially given emergency supply increases in the interim and adjusting demand.
I have read a few reports suggesting that consumers are finally feeling the bite, and demand is adjusting to the higher price regimes. I’ve been waiting for this to happen. As always, demand forecasting is the tough one.