Mixed Signals on Fundamentals in the Markets
After hitting yearly lows last week, Diesel pricing has risen over $.15 in the last week. As expected, bargain hunters typically buy in regardless of fundamentals. The increases have been muted somewhat as there is still that languishing fear that demand will fall off the proverbial shelf in the last two quarters. However, this weeks report showed that gasoline and diesel demand in the US remains somewhat strong, posting gains over last week and last year. While both products showed draws in inventories this week, and Crude showed a solid increase, that appears to more of a factor of less refinery production than anything else. Inventories for all appear stable with the exception of the SPR which is expected to begin repurchasing soon.