Despite the falling dollar and another down day for equities as well as a pep talk from Goldman Sachs analysts, NYMEX crude inched down from yesterday and settled 4% lower for the week. Reflecting the supply problems that Europe is facing, Brent moved up $1.63 from yesterday but that only made the week's trading just about even as it did for both products. There's fear of a recession but no one wants to be holding expensive crude if the markets should crater because the recession is upon us and demand is less than expected.
The other big news about the oil markets is whether NYMEX accurately reflects world markets or should everyone move to Brent. The current $26.36 premium between the two benchmarks is simply too large to continue as is but both seem to be correctly reflecting their respective markets. U.S. inventories are historically very high while Europe is experiencing supply glitches and there continue to be problems in Libya (no crude exports) and Nigeria.
For the week, WTI-$3.12,$82.26; Brent+11¢,$108.62; RBOB+1.9¢,$2.8412; HO+0.08¢,$2.9045.
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