The dollar continues to fall and causes crude to ascend, hesitatingly. The hesitation comes from the sluggish economy and the consequent fall in fuel demand. GDP was at 1.8% in the 1Q 2011. Jobless claims went up again this week and the high unemployment rate insures that fuel demand will continue to stagnate and the rising prices only add to the bad news on fuel demand. Fed Chairman Bernanke's inflationary policies may surge the stock market and commodities but rising prices without a strong economy can only bring stagflation in the near or mid-term. Thus there is hesitation about buying higher priced crude futures.
Today, WTI +18¢, $112.96; Brent -12¢, $125.13; RBOB +1.04¢, $3.4298; HO -.04¢, $3.2334.
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