Crude moved sideways today while both products rose around 3 cents. Crude fell because of anticipation of a bad unemployment report tomorrow. Gasoline rose since demand seems to be increasing. Distillate rose despite the news that demand is declining and inventory is higher than any time the past 25 years. It is possible that the distillate crack will be lower than anticipated and production will be lower to meet demand and not continue this high level of inventory.
Of greater concern should be the news that independent refiners may fail to meet their credit requirements because of slumping demand and low crack spreads. It was bad enough that profits for the 3rd quarter were down 85% from the same period a year ago.
OPEC lived within its quotas for the second straight month leading to speculation that OPEC members find $65 - $75 pricing amenable.
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