Fundamentals were weighing heavily on the market today. Producers, refiners and large users sold their futures to avoid holding on to high priced inventories in a market with continuing deteriorating demand. The speculative traders have been talking up the market with talk of the improving economy despite the continuing job losses and falling demand. Facing $80 in the near term, industry users decided to start selling so as not to have expensive product sitting in tanks or tankers. Then today the Commerce Department revised GDP downward 20% and overnight Shanghai stock market fell at news that China's banking regulators were admonishing banks to stick to credit requirements including capitalization. Industry traders had to protect their companies.
For the day , crude declined $1.62 to $75.82, gasoline fell 4 cents, and distillate was down 2.9 cents. Tomorrow is inventory day, real action in the markets will await the government's report.
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