Crude trading values generally escalated over the past two weeks driven by renewed hopes of economic recovery and encouraged in part by Federal Reserve chairman Bernanke's continued commitment to a low U.S. interest rate policy and evidence of growing demand in China. The market, however, remains very fickle and sensitive to any news related to the status of the current recession. The EIA (Energy Information Administration) in its August economic forecast is predicting that crude should average $70 a barrel through the upcoming heating season. Gasoline spot market prices continue to react to supply and demand related issues. Reduced import levels observed in early August saw some relief later in the month as cargoes from both Europe and the Gulf Coast were diverted to New York Harbour. Distillate prices have firmed as of late in reaction to the planned maintenance related shut down of the 300,000 barrel per day Irving Saint John refinery.

• According to MasterCard, gasoline demand dropped 0.1% for the week ended August 21st compared to the previous week and was down 2.2% from a year earlier. On a four week moving average, gasoline demand was found to be down 1.7% from the year ago period.
• Economic reports from China this past week indicate that crude imports for that country were up 3.5% in July, due in part no doubt to that county's attempt to build a strategic reserve deposit.

• The New York-based Conference Board reported Tuesday that its Consumer Confidence Index rose to 54.1 from an upwardly revised 47.4 in July. Notwithstanding, much room for improvement exists as the minimum level associated with a healthy economy is determined to be 90.
• The U.S. National Association of Realtors reported recently that sales of existing homes in the U.S. rose 7.2% to a seasonally adjusted annual rate of 5.24 million in July, up from 4.89 million in June and representing the fourth straight monthly increase.