With the weekly inventory report came a mixed bag and subsequently a mixed close. As shown below, the largest variance was seen in gasolines which was the only thing that kept the trade positive today. Crude suffered losses finishing down 72 cents to $75.65, while products closed higher. RBOB added .0152 to $2.2101 and HEAT gained .0190 to $2.1591, further widening refining cracks. As we speak, Crude has fallen another 30 cents in aftermarket trading. Many are looking at demand, which has seen gasoline demand rise 10% over the same period last year and distillates rise almost 8% month on month. This after the EIA cut their demand outlook! How much of this is due to a strengthening economy remains to be seen. My sense is that demand, like IQ, wasn’t starting from a very high place so any increase is huge. Long and short, it looks as though we will be range bound for several sessions as investors keep a hairy eyeball on Europe and the DOW to evaluate how the financial crisis reverberates through the continent.
