The Department of Energy''s Energy Information Administration revealed that crude oil inventories rose by 900,000 barrels for the week ended December 9, climbing to 321.2 million barrels from the prior week''s level of 320.3 million barrels. This followed an advance of 2.7 million barrels in the previous week. Oil inventories were 11.7% higher than their levels of the same time last year.

Gasoline inventories posted a week-over-week advance of 1.8 million barrels, the government said, compared to the previous week''s 2.7-million-barrel climb. Gasoline stocks were 4.1% below their levels of last year. Inventories of distillate fuel oil ticked down by 100,000 barrels as well in the most recent week.

Wednesday morning, the Department of Labor release its report on import and export prices in the month of November, with a steep drop in prices for petroleum imports contributing to a notable decline in import prices.

The report showed that import prices fell 1.7 percent in November following a 0.3 percent increase in October. Economists had been expecting a much more modest decrease of about 0.5 percent.

The report also showed that export prices fell 0.9 percent in November following a 0.7 percent increase in October. Prices for agricultural exports fell for the third time in the past four months, falling by 0.3 percent.

The U.S. trade deficit unexpectedly widened in October, according to a report from the Department of Commerce, reaching a new record high. The wider deficit came as an increase in imports outpaced an increase in exports.

The report showed that the trade deficit widened to $68.9 billion in October from a revised $66.0 billion in September. The increase surprised economists, who had been expecting the deficit to narrow to $62.8 billion.

As mentioned above, the wider trade deficit came as the value of imports rose 2.7 percent to $176.4 billion in October from $171.8 billion in September, while the value of exports rose 1.6 percent to $107.5 billion in October from $105.8 billion in September.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks closed mixed, following U.S. central bank interest rate increase. The Nikkei had its sharpest drop in two months, falling down nearly 2% on disappointing business sentiment survey and steel stocks sell-off. Across the region South Korea’s Kospi fell 0.25, while Australia’s All Ordinaries advanced 0.2%, followed by Hong Kong’s Hang Seng, up 0.2%.

European stocks closed mixed, reflecting stronger euro and weak exporter-related issues and auto stocks. The German DAX 30 fell 0.4%, the French CAC 40 lost 0.4%, while London’s FTSE 100 advanced 0.3%, boosted by retailers like Marks & Spencer, Kingfisher and aerospace companies like BAE Systems. The euro rose 0.7% to $1.2040.

OIL, METALS, CURRENCIES

Crude oil prices slipped but kept hovering over $61 a barrel on oil inventory report. Light sweet crude for January delivery fell 22 cents to $61.15 a barrel on the Nymex. Heating oil added 1 cent to $1.8475, while gasoline was flat at $1.6460. Natural gas dropped 40 cents to $14.98 per 1,000 cubic feet.

Gold prices declined despite a drop in the U.S. dollar as investors kept digesting the increased interest rate. In London gold closed at $510.85 per troy ounce, down from $522.80. In Zurich the precious metal fell to $511.45 from $522.95. In Hong Kong gold dropped $7.30 to close at $515.60. Silver closed at $8.41, down from $8.59.

The U.S. dollar sharply dropped against other major currencies on record trade deficit and after the Fed Reserve hinted it might soon stop interest rate hikes. In European trading the euro was quoted at $1.2028, up from $1.1962 The dollar bought 117.24 yen, up from 119.90. The British pound stood at $1.7743, up from $1.7697.

EARNINGS NEWS

Cubic Corp. (CUB: chart), service electronic products manufacturer, reported Q4 earnings of 19 cents a share, down from 35 cents a share in the year-earlier period, missing analysts’ expectations of 21 cents a share Sales rose to $219 million from $185 million.

Winnebago Industries Inc. (WGO: chart), motor homes and self-contained recreation vehicles manufacturer, reported Q1 earnings of 44 cents a share, down from 57 cents a share in the year-earlier period, beating analyst estimate of earnings of 42 cents a share. Sales fell to $232.3 million from $266.1 million.

Charles River Laboratories International, Inc. (CRL: chart), research tools and integrated support services provider, restated its 2005 guidance and announced it envisages 2006 earnings in the range of $2.07 to $2.13 a share on revenue up 7% to 9%. In addition, the company intends to repatriate up to $150 million of its accumulated income earned outside the U.S.

Powell Industries, Inc. (POWL: chart), electrical energy systems maker, announced it reversed to a Q4 net profit of 17 cents a share, up from a net loss of 2 cents a share in the year-ago period on 70% sales growth.