THE VAN DER VALK GAS PRICE ADVISORY FOR MARCH 3, 2009
Yesterday was a Blue Monday or should we say Black Monday for the stock and petroleum markets but Tuesday we were humming a different tune.
What goes up must come down, Spinning wheel got to go 'round, Talkin' 'bout your troubles, it's a cryin sin, Ride a painted pony, let your spinning wheel spin . . . . .
Those forecasters, who had prophesied that the equity markets were due for an adjustment may be feeling a little smug today, but for most others the outlook is bleak.
Equity markets closed out one of the worst days since the recent recession/depression began and in recent years, with S+P 500 trading at an 11 year low. Unsurprisingly, energy markets tanked in sympathy with the WTI April crude contracts losing over $4 a barrel to stay just over $40 a barrel. On top of all this bearish news, Iran was quoted as being doubtful around further OPEC cuts at the March meeting.
Oil traders are as usual keeping an eye on equities' index with a strong bounce in the S&P or Dow could increase the pace of buying. WTI crude oil was back up to $41.23 a barrel on the close today with gasoline down 2 cents and diesel up two cents per gallon. The West Coast spot market is very weak today with most refineries finally back up and running at full efficiency.
This could be a case for the "wiggles" as we anxiously await the Wednesday Department of Energy report. If that shows larger than anticipated draws or builds in oil inventories, the numbers could change instantly. Last week's report strengthened the oil markets when it showed an increase in gasoline demand from the previous week.
Yesterday was a Blue Monday or should we say Black Monday for the stock and petroleum markets but Tuesday we were humming a different tune.
What goes up must come down, Spinning wheel got to go 'round, Talkin' 'bout your troubles, it's a cryin sin, Ride a painted pony, let your spinning wheel spin . . . . .
Those forecasters, who had prophesied that the equity markets were due for an adjustment may be feeling a little smug today, but for most others the outlook is bleak.
Equity markets closed out one of the worst days since the recent recession/depression began and in recent years, with S+P 500 trading at an 11 year low. Unsurprisingly, energy markets tanked in sympathy with the WTI April crude contracts losing over $4 a barrel to stay just over $40 a barrel. On top of all this bearish news, Iran was quoted as being doubtful around further OPEC cuts at the March meeting.
Oil traders are as usual keeping an eye on equities' index with a strong bounce in the S&P or Dow could increase the pace of buying. WTI crude oil was back up to $41.23 a barrel on the close today with gasoline down 2 cents and diesel up two cents per gallon. The West Coast spot market is very weak today with most refineries finally back up and running at full efficiency.
This could be a case for the "wiggles" as we anxiously await the Wednesday Department of Energy report. If that shows larger than anticipated draws or builds in oil inventories, the numbers could change instantly. Last week's report strengthened the oil markets when it showed an increase in gasoline demand from the previous week.
No comments:
Post a Comment