The Federal Reserve is trying to bring interest rates down by buying $400 billion of long term debt but their description of their prescription used words associated with a declining economy especially noting "significant downside risk" and "slow growth." The markets acted quickly and brought futures prices down for crude and product despite a crude drawdown in inventory. That drop in crude inventory was attributed to a fall in imports. Distillate inventories fell while gasoline stocks were up. Just as significantly, the dollar went up with news of the the Fed's proposed action.
Analysts are also following the stock market and Dow Jones average dropped 2.5% after Moody's downgraded Bank of America and Wells Fargo. All this news overshadowed the Palestinian bid for U.N. recognition and the continuing fighting in Libya.
Today, WTI-97¢, $85.92; Brent-18¢, $110.36; RBOB-3¢,$2.67; distillate-3¢, $2.93.
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