Early in the trading day IEA forecast higher demand and there was some upward movement but the dollar continued its upward rise and newly released retail sales also showed upward movement and crude and product fell for the 8th straight day to show a close for crude below $70 for the first time in over 7 months. Retail sales may have risen but demand for fuel did not no matter what IEA forecasts. The huge stock piles of crude in floating storage would probably more than make up for any increased demand in 2010. What is also worrying traders is the large inventory of distillate even amidst all of this cold winter weather. No one wants to be holding high cost futures contracts or above market physical product next year if demand remains weak.
For the week, crude -6% or -$6.06, gasoline -7.6% or -15.06 cents, distillate -6.6% or -13.51 cents.
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