All analysts' eyes remain focused on Europe as the Europeans struggle with an acceptable agreement on a rescue fund for the sovereign debt problems. The Germans, in particular, seem unsure about taxing their citizens to insure that Greeks can enjoy early retirement. Thus the two crude benchmarks moved in opposite directions with WTI falling 1% and Brent rising 1%. Ghaddafi's death did not figure into the Brent settlement price but probably did help to bring NYMEX prices down with the knowledge that production would now be stepped up and unimpeded by fighting.
Economic news from the U.S. was similar dualistic with news on oil demand being quite bearish while the Philadelphia Fed published a report that the manufaturing index unexpected rose by a rather significant 26.2 which is the highest increase in over 30 years. This number must be followed for the next several months to prove that it is not an outlier.
Today, WTI-81¢, $85.30; Brent+$1.06, $109.63; RBOB+0.4¢, $2.6755; HO+4.89¢, $3.0301.
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