There is now a real indication that prices may be going up. The market has begun to experience backwardation, i.e., prices are higher today than they are expected to be in the future. The market has been operating in contango with prices higher in the future rather than today. This news as well as the digital imaging if the Cushing Storage Terminal that showed significant inventory drawdowns led to a 4.4% increase and pushed WTI above $90 for the first time since mid-September.
Lending even more credence to greater demand and a more limited supply was news that China's manufacturing is expected to increase and Japanes exports are up.
Today, WTI+$3.87, $91.27; Brent+$1.89, $111.45; RBOB+0.4¢, $2.6888; HO+3.71¢, $3.0546.
No comments:
Post a Comment