Futures plunge on dollar, data and demand

Posted by Mark Pszeniczny on May 11, 2011 10:08:00 AM

LADIES AND GENTLEMAN, PLEAS KEEP YOUR HANDS AND FEET INSIDE THE ROLLER COASTER AT ALL TIMES!  What else can you say about the last several sessions that has seen 25 cent drops, 30 cent rises and another 25 cent drop.  Overnight saw big drops on gas as what appeared to be an overbought speculative position put on Monday and Tuesday get sawed off as fears resurfaced that the European Union might not be willing just yet to jump in and help Greece. The subsequent reaction was a large jump in the Dollar, pushing commodities to the floor.  So much for those tight supplies due to flooding?  Bearish inventory data pushed the NYMEX down even further as Crude gained 3.8mbl, distillates fell by 800k and gasolines rose 1.3mbl as most were expecting moderate draws.  For the first time since Rita and Katrina days, the Trade was halted as RBOB losses pushed over 25 cents.  At the close, Crude tumbled $5.67 to $98.21, HEAT lost .1029 to $2.8983 and RBOB  lost and astounding .2569 to $3.1228.   At the end of the day, most were looking at demand figures that showed drops across all products, furthering the notion that Americans are either unwilling or unable to support retail fuel over $4 per gallon.   

heat chart
                 CLOSE       CHANGE 
JUN    31228       -.2569
JUL    30417       -.2121
AUG    29778        -.1800
SEP    29331       -.1567
OCT     27755       -.1373
NOV    27405      -.1330
          CLOSE    CHANGE
JUN    28983      -.1029
JUL    29123      -.1022
AUG    29262      -.1018
SEP     29426      -.1011
OCT    29587       -.1003
NOV   29740       -.1006

Topics: Greece Bailout, RBOB tumbles

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