Crude dropped $1.16 at the close as crude inventories rose mostly due to increased imports while product inventories fell due to some increased demand and refinery product inventories being drawn down. The dollar gained in value and that would have deepen crude's decrease but analysts and traders are trying to understand where the economy is headed and thus decide if they should buy or sell. Fuel demand seems to have increased over last year but analysts are showing caution because of EIA's forecast model problems revealed last week. Another note of caution is European debt raising the dollar's value. Writing the buy/sell programs for commodities is made harder because of the great number of variables you have to include in your formulas.
Today, crude -$1.16 to $80.64, gasoline -3.55 cents to $2.2208, distillate -2.65 cents to $2.2208. Street at $2.659.
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