The reasons for today's prices are hard to determine as the there were inventory builds for crude and product but the dollar fell against the basket of six currencies. However, trading volume for WTI is getting a lot lower because the Cushing terminals are holding so much product that refiners using the NYMEX bench mark are unable to price according to real market supply and demand. While NYMEX has been showing contango for WTI, Brent has been trending backwardation. The contrast between the two crude bench marks may be more about perceived demand in the U.S. vs. perceived demand in the rest of the world and the bearish news in the U.S. is skewing the world market.
Today, crude +96¢, $87.25; gasoline +8.99¢, $2.4304; distillate +7.51¢, $2.669.
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