Despite mixed economic signals, crude rose 3% to the highest level in almost 6 months at $73.25/bbl but still remains within the $65 - $75 range in which it has traded the past 3 months. The IEA is forecasting increased demand for the rest of the year and into next year. It is hard to understand this optimism when Valero and Sunoco are shutting down refineries because of decreased demand and uneconomic crack spreads. There are some industry experts predicting crack spreads of $5 - $5.50/gallon at the start of next year and those margins are not tenable. Independents will be especially hard hit.
Distillate futures increased 5 cents and gasoline was higher by 3 cents. Street prices in the area did not move over the weekend although my grocery store loyalty card enabled me to buy gasoline at $2.059 yesterday.
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