Inventories increased higher than expected for both crude and distillate while gasoline stocks rose higher than expected. Refinery utilization was up but not enough to overcome suspicion that demand remains weak.
There are numerous factors to consider at this point not just demand and inventory: the rise of the dollar and the decline of the euro, the switch of refineries to greater gasoline production versus distillate, and the drop of the crack spread. The market futures graph shows contango for pricing going into the outer months which normally means traders expect prices to fall in the near term.
Today, crude -$1.15, $85.76, gasoline -3.81 cents, $2.3129, distillate -2.71, $2.2415.
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