There were many reasons for crude to fall today: The Obama administration's restrictions on financial institutions' risk taking, speculation that China was going to raise interest rates to slow growth, continuing weak total demand that mirrors a slumping economy and punctuated by this week's declining equities market, the likelihood that seasonal demand for distillate will now drop as we approach warmer spring weather, and larger than average stocks of crude and product around the world. There was a reason for everybody to sell rather than buy.
Today's prices were the lowest since crude hit $74.11 on December 22, exactly a month ago. The 10 cent drop in distillate is indicative of the overall economic problem. Economic conditions are such that not enough trucks and trains are running and fewer jets are flying. Refiners have been reducing inventory and cutting back on production and that has kept prices higher but still crack spreads are not generating profits.
For the week, crude -$3.42 to $74.54, gasoline -$0.0753 to $1.9689, distillate -$0.1049.
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