Crude rose 50 cents today and both gasoline and distillate increased one cent. Though prices increased, analysts and traders were more worried about high levels of inventory for crude and product. Bloomberg quoted a technical analyst who opined that if gasoline breaks through the current support level at $1.6053, the next level of support would be at $1.5823 but at that point who knows the real level of support. This is really a question of supply and demand and supply is plentiful while demand has declined. Only increased economic activity and the greater demand thus incurred would spur price increases.
Wednesday's inventory report and the market's reaction should be interesting.
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