NYMEX Bulls remain in power

Posted by Mark Pszeniczny on Sep 13, 2010 9:49:00 PM

All too often in this Industry we hear or see things that so called experts attribute to the rising cost of fuel. The vast majority of these events are so far away from our personal bubble that it is hard for the normal person to understand the affects. So for the past several days we have talked about the Enbridge Pipeline leak that has put the entire market into a free for all as we head into turnaround time. This pipeline has the capacity to supply roughly 700,000 bpd to the US, more importantly a key end point in this pipeline is Cushing, Oklahoma. Cushing is often considered as the benchmark point for Crude in the US. So even though we know there are ample amounts of Crude throughout all PADD’s, with Cushing stocks off, the psychology among investors is that there is or will be a shortage of Crude, implied or otherwise. Lesson is, the Oil market is a small, small World. With China showing stronger than expected Manufacturing rates last month, the rally carried on today. Heat has risen over 17 cents in almost two weeks. Again, the bounce of the front month contract off the $1.95 level for the fourth time this year appears to have solidified the yearly low. At the close, Crude gained .74 to $77.19 (slightly above the widely talked about resistance level of $77. RBOB added .0075 to $1.9806 and HEAT lead the charge gaining .0183 to $2.1227.

Topics: The Market, NYMEX, Enbridge Pipeline

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