Crude continued to fall and both products followed the downward movement today. Yesterday's crude inventory level report for Cushing showed the highest levels ever for inventory and this is worrying traders. The dollar also continues to rise while the euro persists in its downward spiral as southern European countries try to come to grips with their respective deficits.
Refineries are trying to make the most of a bad situation and cut back on utilization 1.2% last week to 88.4%. This has led to an 9.3% increase in the crack spread to $16.45. The contango premium is now at $4.55 between front month and the further month caused by the extraordinarily large inventory.
Today, crude -$0.42, $74.97, gasoline -1.04 cents, $2.1955, distillate -1.19 cents, $2.1385. Street steady at $2.539.
No comments:
Post a Comment