The rationale for today's major ascent in crude prices was rather brief. It boils down to a second day of contemplating lower interest rates added to the unemployment report coming in as expected. With contango still commanding the further months out, the market takes the current oversupply into consideration and is betting that the demand will be as expected in the summer. In 2010 so far, April has been the most optimistic in terms of economic expectations and the market reflects that. The range of closing prices of $81.51, April 19, to $86.81, April 6, is a higher range than the $78.80 to $84.41 of March, $71.16 to $80.13 of February, and $72.95 to $82.93 of January. Of special note is how much tighter the pricing band is for March and April when compared to January and February.
Today, crude +$2.45, $85.17, gasoline +3.65 cents, $2.357, distillate +3.27, $2.253.
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