It seems that for the moment we have reached the Egyptian uprising premium as WTI moved sideways while Brent move slightly higher. Gasoline, however, fell on news that inventories were building higher than expected while distillate fell despite the increase in stock because of the extremely cold weather in the Mid-West and and Northeast. Even the news of violence in the streets of Cairo really did not cause a major jump in price as analysts are weighing the true costs of a Suez Canal and Sumed pipeline shutdown. The high inventory levels in the U.S. also insulates NYMEX pricing somewhat from the political problems in the Middle East.
Today, WTI +22¢, $90.96; Brent +73¢, $102.36; gasosline -1.71¢, $2.50; distillate +2.76¢, $2.7816. Beginning today, I'll include Brent pricing. The Europeans use Brent as their bench mark and the premium between the two products is substantial. Also, the two bench marks are trending differently, Brent is showing a backwardation trend while WTI is still contango.
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