Wednesday, September 30, 2009

September 30, 2009

As this was the end of the month, traders did not really need an excuse to move prices up but the large decline in inventories made trading up a little easier. Analysts point not only to the big increase in inventories but also to the improving economy, including figures from China and Japan. If you remember last month the Chinese adjusted their previously announced economic results and so I remain unconvinced about the improving world economy. The improved economic numbers analysts are talking about are GDP negative nos. 6.4% in 1Q and 0.7% in 2Q. Demand for fuel is still down. Losing less is still losing and that is not necessarily good news.

Today's numbers: Crude +$4.06/bbl, gasoline +9.44 cents, distillate +10.3 cents. Street prices should follow the upwards movement soon but the lag may take longer as demand is down and most marketers will drain their tanks before raising prices.

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