Crude Rebounds Back Above $70
Posted on: Jun 18th, 2009 | By Doug Casey | Filed under Oil Investment & Alternative Energy
In the energy market on Wednesday, crude for July delivery slid below the $70 mark, but rebounded to close at $71.03/barrel, up 56 cents. July reformulated gasoline fell 3.8 cents, to $2.033/gallon.
In its weekly inventory report, the Energy Information Administration said that crude stocks dropped by 3.9 million barrels for the week ended June 12. Gasoline supplies rose by 3.4 million barrels, while distillates were off 300,000. Refineries operated at 85.9% of capacity, up 0.1 percentage point from the previous week.
The falloff in crude was higher than expected. But, “We’re seeing demand for gasoline start to improve,” said Phil Flynn, of Alaron Trading. “That was a green shoot in the [EIA] numbers. That offset the bearishness from the other side of the report.” Over the last four weeks, motor gasoline demand has averaged nearly 9.3 million barrels per day, up by 1.1% from the same period last year, the EIA said.
And, “We can’t dismiss that options expiration had something to do with it as well,” Flynn added concerning Wednesday’s action. Nymex July crude options expired yesterday.
Source: Crude Rebounds Back Above $70
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