The news of the economy and the markets was all bearish. The earnings reports have not continued to be good unlike the first ones that came out two days ago. The stock markets are down as the analysts there see the same numbers that oil industry analysts are viewing. Added to that is the fact that gasoline demand has not met expectations and neither has distillate demand. The unemployed are not driving around a lot and this will start to put a crimp on margins and profits in the 2H.
All the talk about dropping prices obscures the fact that prices have been in a specific channel, $70 to $80 per barrel, for sometime. Halfway through this month we are actually priced higher today than we were at the beginning of the month.
For the month, crude +$3.08, $76.03, gasoline +5.86¢, $2.0486, distillate +7.17¢, $2.0117.
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