Crude trading values have steadily declined since July 1st as commodity traders continue to absorb the dual impact of a slower than anticipated global economic recovery coupled with growing inventories. The realization that the global recession will result in a long road to recovery has significantly impacted previous estimates of this coming year's global consumption. DOE's reported inventory builds for both gasoline and distillates this past week triggered substantial declines in spot market prices for these products. Analysts point out that given currently depressed gasoline markets, prices should remain relatively stable for the foreseeable future. Notwithstanding, the reduced imports combined with diminished domestic production could result in temporary price spikes from time to time over the near future.

The U.S. Dept of Energy reported last week that domestic motor fuel consumption over the past four weeks was down 1.4% from the same period last year.

• This past week, the International Monetary Fund predicted that the global economy would shrink by 1.4% this year, a bigger decline than its April forecast of 1.3%.
• This past week, the Commodity Futures Trading commission indicated that it would hold hearings on whether or not to impose limits on the dollar value of bets that a single speculator could make via commodity futures. Separately, both British Prime Minister Gordon Brown and French President Nicolas Sarkozy in an Wall Street Journal interview called for steps to be taken to limit the potential damage caused by speculative activity in commodities markets.