Last Friday we were all excited that the NYMEX appeared to be on the verge of its January thaw. Well, a small pipeline leak on the Alaskan north slope over the weekend turned that jubilation into disappointment. Based on reports, a 5 to 7 barrel leak (yes, that’s 210 to 294 gallons) leaked from the pipeline causing the entire line to be shut down. With normal flow rates expected in the next day or so, early morning action had profit takers pushing the pits down almost 2 cents in electronic trading. The forecast for a crippling mid week snow storm in the Northeast had buyers out in full force and turned the session around at the open. Bulls jumped on when reports of diesel demand surged in December, up over 2%. An indicator to some that our economy is moving in the right direction and business can afford the higher prices seen in the last few weeks. All that was lost in value last week was taken back, and then some, in the last two days. Look for Wednesday to be heavily influenced by the Inventories that again are expected to show Crude levels to fall and products to rise. At the end of the day, Crude jumped $1.86 to $91.11, RBOB added .0241 to $2.4784 and HEAT gained .0527 to $2.6088.
