Weak demand forced the market to a split decision as crude and distillate were basically sideways but up a little while gasoline was definitely down by over a penny and a quarter. Yesterday's very bearish report on higher than expected gasoline stocks revealed demand had not yet returned to even 2008 levels. The bearish news on crack spreads of less than $7.50 for both gasoline and distillate points to a major demand problem for products. Refinery shut downs and maintenance turn arounds cannot mask weak overall demand.
Low demand for gasoline is increasing gasoline inventories. This causes the futures slate of product and crude to move sideway or fall.
Today, crude +0.19 to $73.61, gasoline -1.29 cents to $1.9184, distillate +0.37 cents to $1.9191. Street prices stayed at $2.329.
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