Yesterday's rise could not gain traction today and there were slight decreases in crude and distillate and a moderate drop in gasoline. Traders are still worried that China's new tight credit policies will slow manufacturing growth and dampen demand. The dollar's gain on the Euro also moderated any appetite for buying futures.
In the background of these day to day events is news that OPEC members are cheating at the rate of 1.75 million barrels per day. Crude in the $70 - $80 range is profitable for the cheaters but they are building supply for which there is not such great demand. Expect prices to fall again if the EIA's reports an inventory build.
Today, crude -$0.34 to $74.71, gasoline -2.58 cents to $1.9705, distillate -0.49 cents to $1.9546, street price +2 cents to $2.369.
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