A lot of bearish news brought only a 0.7% decline for crude from yesterday's settlement. This was because the initial report on U.S. GDP was a 2.5% increase as compared to the 1.3% growth for the previous quarter. The Feds have always adjusted the initial reports on economic activity and those adjustments have always been negative.
The most bearish news was that Japanese industrial output fell 4% in September which was twice the estimate. The other bearish news was that the growth in consumer spending is outpacing the growth in personal income indicating that Americans are eating into their savings or borrowing more.
Traders are still feeling bullish because of the Euro debt repayment plan approved unanimously yesterday.
Important trend to note is that the spread between NYMEX and Brent has plunged to $16.59. There is a little bit more stability in European markets due to Ghaddafi's death and approval of the Euro debt repayment plan.
This week, WTI+$5.92, $93.92; Brent+35¢, $109.91; RBOB-0.24¢, $2.6822; HO+4.17¢, $3.0592.
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