August 11, 2009

Interesting phenomenon when WTI, Brent and heating oil drop and the focus of the markets is on the fall of crude. RBOB rose and street gasoline rose again today but nobody seemed to notice. The falling stock market, high inventories, low demand, and the nice WSJ article on VLCCs full of product all point to falling futures prices. The markets are in contango and does that mean prices will drop again tomorrow? We'll see if the markets pay attention to tomorrow's inventory report.