Crude ascended to heights not seen since November 18 as early retail numbers demonstrated growing consumer confidence in the economy by rising3.6 % over last year and China announced improved economic performance over expectations. The cold weather is also drawing down distillate supplies and should improve both distillate and crude futures performance. However, the report that 6% of the world's deadweight tonnage is storing crude is no small number. As the storage contracts end over the next year traders and other owners of floating inventory will be flowing crude into the market and applying downward price pressure.
Also assisting to move prices up are the violence in Iran and the Russian threat to cut off supply to the Ukraine, the Czech Republic, Slovakia and Hungary.
For the day, crude +$0.75 to $78.80, gasoline +3.4 cents to $2.074, distillate.
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