Crude rose 1.2% or $0.90 as China's manufacturing purchasing index and US manufacturing output climbed and, more importantly, the dollar fell. The gorilla in the market is still very evident as there was talk of the high crude inventories world wide even though it is expected that tomorrow's inventory report will show a draw. With prices going up this year over last fall, it was not unexpected that OPEC showed an escalation in production.
In an announcement that affects price at the street level and commodity prices in general the EPA delayed the imposition of E15 regulations. Refiners and automakers are cautioning about the problems caused by any ethanol blend greater than 10%. There is also considerable customer worry about ethanol and there has been market resistance in certain markets.
Street prices continue in the $2.40 range. One can only be thankful in Jonesboro as I saw $3.10 prices in Chicago over the weekend and $2.70 in Chicago's southwestern suburbs.
For the day, crude closed at $78.50, amazingly Brent continued its climb to $79.67, gasoline ascended to $2.051 and distillate mounted to $2.0824.
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