The market decided that it had been too exuberant about the economy and the prospects for economic growth for most of the early part of the month as they began to digest the counter-inflationary measures the Chinese are intending to impose. The Chinese have just finished berating Obama about the QE2 and then took measures to cut back inflation by announcing their intention to raise interest rates. A $3 drop in the price of crude is big news and represents the significant uneasiness within the trading community about how the global economy is doing. This happened on a day in which the dollar dropped in the currency markets which would normally be a signal for commodities to take the opposite course.
For the week, crude -$2.07, $84.87; gasoline -2.57¢, $2.208; distillate -2.5¢, $2.3614.
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