Equities are surging. The dollar is falling. There were significant inventory drawdowns for crude and products. Home sales were also reported as being up. The other factor raising prices is the risk premium. All these factors led to big increases in crude and products.
The total shutdown of Libyan production and the current instability in Nigeria are not the only problems facing oil markets. There seems to be no way to confirm how much is being produced by the Saudis as their reports have not been consistent. This lack of transparency makes the markets very nervous and this disquiet shows up in higher prices.
Today, WTI +$4.23, $111.38; Brent +$2.51, $123.84; RBOB +4.19¢, $3.275; HO +6.11¢, $3.2196.
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