Crude and products were already falling prior to the credit downgrade issued last Friday. The credit downgrade, however, accentuates the poor economy and the accompanying weak demand for fuel. Analysts have been waiting for the demand surge for gasoline and distillate but it never came. Even after the Fed announcement about holding the very low interest rate for another couple of years, crude and products continued their seemingly inexorable march towards lower prices.
OPEC is as unsure about what to do as the markets. Brent has been keeping up and following WTI's lead in dropping prices and roughly maintaining the premium between the two crudes.
Today, WTI-$2.01;$79.30; Brent-$2.35;$101.39; RBOB-2.4¢,$2.6676; HO-3.69¢,$2.7648.
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