Futures Dip as GDP Report Shows Flat Economy
Last week we mentioned that it was going to be a sloppy back and forth week if a debt ceiling resolution was not passed. As shown below, that was exactly what materialized. Starting the week, HEAT was at 3.1280 and finished today at 3.0962 with all sorts of gyrations in between. As traders are not willing to commit either way as a resolution still looms and a tropical storm hitting the gulf region, it was somewhat surprising to see the market fall off as much as it did mid session. Both products were down as much as 4 cents on the heals of GDP data being released which showed the economy was basically flat. Furthermore, it notes that the recession was deeper than first thought and the economy is obviously growing at a much slower rate. There is growing sentiment that we will begin to encounter demand destruction at a growing rate if prices do not ease relatively quickly. At the close Crude fell $1.74 to $95.70, RBOB lost .0047 to $3.1129 and HEAT fell .0090 to $3.0962. This weekend will be critical as to how the Markets will shake out for the next few months, as a resolution should see lower prices