Crude fell 1.8% on today's trading as oil now seems to face a barrier prohibiting prices beyond $110 for WTI and $125 for Brent. Every news flash that does not meet the media and regime's standard "the economy is improving" mantra causes traders to head for the exits. Today it was the news that imports had raised crude inventories to levels not seen since mid-year 2010. Refinery utilization is up almost 3% but gasoline and distillate inventories are dwindling as the last of the winter specs are being sold. This should not cause jitters but prices are way too high for global demand and the state of the global economy.
The big news today was that France and the U.S. are both now jawboning prices down with threats to sell crude from the SPR as governments are anxious about high motor fuel prices in an election year. Iran is also making noise about wanting to re-start negotiations about its nuclear capabilities. Taken together traders sold to get out of higher priced contracts.
Today, WTI-$1.92, $105.41; Brent-$1.46, $124.08; RBOB-1.01¢, $3.3955; HO-1.07¢, $3.2079.
No comments:
Post a Comment