The pipeline break in Illinois, positive economic news from China and Japan, and IEA's improved demand forecast for the rest of the year led to a significant increase in crude and product prices followed crude's lead. The ability of the pipeline company to quickly repair the line and get oil moving into the US from Canada will likely determine how the price of crude moves next week. The US still has abundant supply to cover the short term. Even if the pipeline cannot be repaired ASAP, supply shortages look to be localized to the Chicago area. This makes it a logistical and not a supply problem for the moment.
For the week, crude +$2.05, $76.46, gasoline 3.75¢, $1.9729, distillate +3.95¢, $2.1045.
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