It may be Friday the 13th but the news was not scary on the futures front. The underlying reasons are somewhat daunting and if you do straight line extensions to next year it can be chilling but the market is at work and adjustments will be made long before then.
Crude descended today 25 cents from yesterday but only 36 cents from a week ago. All attention was focused on the highs of the week reached Wednesday and the monthly highs, $81.84/bbl, reached October 21st.
Distillate also dropped 1.4 cents from yesterday and last Friday while gasoline fell 1.8 cents from yesterday but actually rose 1.4 cents from last Friday's close. There is some concern that crude is more than double last year's price and gasoline is closing in on $3. However, gasoline prices are higher because crude is that high despite fundamentals and refinery utilization and imports are down.
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