November 12, 2009

Crude declined to its lowest level since October 14 at $76.84 as inventories were 1.76 million barrels more than expected and consumption fell 4.3%. Distillate also declined to its lowest since 10/14 to $1.9828 and gasoline dropped to $1.9383. Refinery utilization decreased 0.7% to 79.9%. In another sign that crude prices may stay in the new range of $75 -$80 range, OPEC announced that it would be increasing production at the next meeting. Fundamentals were all the story today but tomorrow is another day.