The effects of last week's announcement that IEA would release 60 million barrels over a thirty day period seem to be dissipating very quickly. Today's settlements for WTI and Brent showed a 52% and 41% increases from last week's lows. The fall of the dollar caused by the impending resolution of the Greek sovereign debt problem proved to be a stronger push than the pull of more supply.
Last week's gasoline consumption was up 1.9% to 19MBD and the next two weeks will show even more consumption because of the July 4th holiday. QE2 ends Thursday and that may ease the inflationary push of higher commodity prices. Tomorrow's release of the Cushing inventory figures will be contrasted with the moves in the financial markets in a market that still does not know its direction.
Today, WTI+$2.28,$92.89; Brent+$2.79,$108.78; RBOB+8.21¢,$2.8896; HO+6.08¢,$2.8257.
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