March 30, 2012

Obama regime undercuts Israel by announcing more future sanctions against Iran. Equities up, dollar down. Markets wary and move sideways today.

For the month, WTI-$4.05, $103.02; Brent-49¢, $122.88; RBOB+34.76¢, $3.3899; HO-1.96¢, $3.1684.

March 29, 2012

NYMEX crude fell significantly today after the Saudis joined in the lower prices jawboning causing traders to be even more cautious about futures contracts. As the largest producer and with the ability to produce even more, the threat of the Saudis placing more product on the market is bound to make all the bulls hesitate. The Sarkozy government, also facing an election this year, is leading the charge for a release of SPR crude that would also bring prices down in the short term. Other factors causing crude to tumble today were the fall in equities and the dollar's jump over other currencies.

Today, WTI-$2.63, $102.78; Brent-$1.69, $122.39; RBOB+0.51¢, $3.4006; HO-4.9¢, $3.1589.

March 28, 2012

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.

March 20, 2012

Big drop in NYMEX crude as Saudis are trying to bring prices down to insure continuing economic recovery as China's economy seems to be slowing down as its export-based economy faces falling demand for its products. Adding to the falling crude price was a strengthening dollar and tumbling equities.

Today, WTI-$2.48; $105.61; Brent-$1.24, $124.12; RBOB-0.47¢, $3.3631; HO-2.46¢, $3.2367.

Strong finish to the week as dollar fell while the regime denied suggesting SPR release it floated yesterday.

For the week, WTI-34¢, $107.06; Brent-17¢, $125.81; RBOB+2.45¢, $3.3569; HO+1.81¢, $3.2819.

March 14, 2012

The stronger dollar led to a modest 1.2% decline for NYMEX futures. There was also a lower than expected inventory build that may be attributable to refiners' caution about the current high prices and that may also be why refinery utilization fell 1.4% as refiners play cautious about manufacturing oil products when the economy still seems to be stagnant.

Today, WTI-$1.28, $105.43; Brent-$1.07, $125.15; RBOB-0.76¢, $3.347; HO-0.94¢, $3.2618.

March 13, 2012

Signals from the economy appeared to be bullish and the crude markets rose very modestly while gasoline continued its spring price run-up. WTI has been operating in a very narrow price band between $105 and $109 while Brent's price band has been between $121 and $126. The market may be overpriced for the actual economic conditions but there is still a worry about the global economy despite the seeming product shortage. Taking a quick look at products and it shows that gasoline has overtaken distillate in price this month and seems to have momentum for even more price increases.

Today, WTI+37¢, $106.71; Brent+$1.11, $126.22; RBOB+3.16¢, $3.3546; HO+2.83¢, $3.2712.