Ben Bernanke insists on diluting Americans' net worth by continuing to weaken the dollar and thus making commodities more expensive. Bernanke's articulation of Fed policy caused crude to rise to the heights it reached on April 8 and leaves the market on the upswing similar to 2008. Analysts seem to misunderstand the draw down in gasoline and distillate inventories and ignored the continuing increase in crude inventory and the decrease in gasoline demand the past week. Refiners are obviously keeping refinery utilization down, 82.7 this week compared to 89 a year ago, in order not to oversupply the market and this has allowed them to enjoy crack spreads of of $28+. Refiners are able to do this because demand is so low and they feel no need to dilute their crack spreads by producing more.
Today, WTI +57¢, $112.78; Brent +99¢, $125.13; RBOB +6.27¢, $3.4194; HO +2.26¢, $3.2338.
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