$80 seems to be the new ceiling for crude. Since October 19 there have been numerous sessions that ended near $80 including this past Tuesday and Wednesday. The inexorable down draught of supply, demand, inventory, and utilization collide daily with the stock market and the dollar. Fuel demand is down 4.1% from a year ago. Inventories are 5.3% higher than a year ago and 3.5% than the five year average. Distillate stocks in particular are the highest they have been in eleven years. Obviously one of the reasons for falling demand is the high jobless rate now above 10.2% with an estimated 17% if you take into consideration those no longer looking or those who are underemployed and working part time or for significantly less than they used to.
For the day crude closed -$2.04 at $77.44, gasoline -4.1 cents at $1.969 and, no surprise, distillate with such high stockpiles -5.1 cents at $1.969.
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