The dollar rose forcing traders to think fundamentals and crude and products futures prices fell. The most overbearing fundamental component is supply and the world is awash in crude and the US crude inventory is estimated to be higher by 500,000 barrels while gasoline supplies are also estimated to be 1,750,000 barrels higher, the gasoline number is the highest since mid-April. Since we are already in the winter cold temperature season distillate supplies were down 750,000 barrels. The other overbearing fundamental factor is demand and that remains weak.
The contango spread between January and February increased another 11 cents to $2.03 and this is indicative of the huge stockpiles of crude around the world.
For the day, crude -$0.90 to $72.97, gasoline -1.6 cents to $1.9305, distillate -1.9 cents to $1.9305.
Tomorrow is inventory report day.
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