Reality hit hard today but crude only fell a little but there was more significant sinking of product futures. Inventory for product and crude rose where draws were expected. The tax and accounting efforts of the oil companies to get rid of inventory for LIFO and tax purposes were the real reason for five straight weeks of falling stock piles in late November and December. The first week of January showed unexpectedly large gains in oil supply and exposed really bearish numbers for the first week of the month.
It is expected that Asian demand will surpass US demand in 2010 but how can they grow if the US isn't importing their goods. Europe is expected to stagnate economically in 2010 and this will also dampen demand.
Today crude -$0.68 to $79.72, gasoline -3.07 cents to $2.06, distillate -2.95 cents to $2.0934.
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