Yesterday I cautioned against over-interpretation of the initial economic and jobless news. There have been too many revisions of the initial reports such as the rosy economic report of 3.8% growth 2 quarters ago and the subsequent revision to 2.2%. The bad news came in today's revised numbers and the additional impetus of the rising dollar caused crude to jump 5.7% today, gasoline +5.1%, distillate +4.9% Underlying the dollar's rise was the bad news on European economies. This threatens global demand especially when you include China's latest moves to restrict bank lending. There has been talk of oil being overpriced and the large drop in price today indicates that this idea is not unknown.
Today crude -$4.41 to $72.61, gasoline -10.5 cents to $1.935, distillate -9.63 cents to $1.9225. Street prices were unchanged today but let's see how far they go down tomorrow.
No comments:
Post a Comment