Ghaddafi's forces have taken over the oil port city of Ras Lanuf and the dollar fell in trading versus the euro causing crude and products to increase significantly. Today's prices are the highest since the summer of 2008 and there is no end in sight for the Libyan fighting and Middle Eastern unrest. The QE2 has devalued the dollar and currency experts believe that the dollar is overvalued. Since the dollar is the denomination of choice for crude, its devaluation will be balanced by a rise in commodity prices including oil. Demand for products is also being forecast to increase with the summer driving season set to start in two months.
For the month, WTI +$9.66(+10%), $106.72; Brent +$5.34(+4.8%), $117.36; gasoline +37.75¢(+13.8%), $3.1076; distillate +16.18¢(+5.5%), $3.0898.
No comments:
Post a Comment