The downward revision of one of China's leading economic indicators and the decline in US consumer confidence once again led to fears that the global economy was not improving but actually deteriorating. In turn this led to significant decreases in crude and product futures prices. Despite Treasury Secretary Geithner's statement yesterday that the rest of the world had to pick up the economic pace and could not rely on American economic prowess, investors and analysts look for the US economy to pick up before the world economy can be deemed to be improving. The corollary to that scenario is that if the US economy improves then there will be Chinese goods to be sold in the US and then worldwide demand for oil and oil products will increase.
Tomorrow's EIA inventory reports will give direction to the market for the rest of the week although the upcoming three day July 4th weekend will also have analysts worrying about the state of markets prior to the holiday.
Today, crude -$2.33, $75.94, gasoline -6.64C, $2.0716, distillate -7.36¢, $2.0209.
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