The market remains unsure of the direction of the world economy. Thus there was a small increase in crude and small decreases in both products. Looking only at fundamental issues, fuel demand was up during the holiday weekend but is not trending towards a strong recovery in demand, refinery utilization is down, and the expectations are for a draw in crude and a build in gasoline and distillate. Tomorrow's inventory reports will answer some question about the direction of the market but so far this year these considerations have taken a back seat to the financial markets.
The other greater factors affecting oil prices are the currency market movements between the dollar and the euro and the dollar moved down today as the euro rose for the first time in four trading sessions. There were no headlines about sovereign debt problems with the southern European countries and so the effect on oil was muted.
Today, crude +$0.63, $72.04, gasoline -0.75¢, $1.9921, distillate -0.25¢, $1.965. Street +6¢, $2.369.
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