9/3/2009

Hello Elburn Coop Blog Users. By way of introduction, my name is Zach Winter. I am the Elburn Cooperative petroleum sales and marketing manager. I come to Elburn Coop with a diverse sales background and a formal education from Illinois State University. It is said that the average adult attention span is about twelve minutes when listening and about six sentences when reading. Hopefully your still here. I would like to talk about the Energy Market. For all practical purposes we will focus on the three key areas which makeup the Energy Market: Distillate, Gasoline, and Crude Oil. While each commodity is directly related in the manufacturing process, they are independently traded daily.
Distillate:
The short term outlook appears to be bearish with consistent loses all week. The Department of Energy reported Wednesday a 1.2 million bpd build in Distillate. The news created a massive sell off, edging close to the 2009 single day record loses of $.11. Demand was reported down 7.3% from last year, with this weeks savings it is not a bad weekend to fill the truck.
Gasoline:
The short term outlook for gasoline is slightly bullish with consistent gains over the past few trading sessions. On Wednesday the DOE report gave a bounce to the gas market by reporting 3 million bpd draw. Overall demand is up half of one percent from last year. Expect to pay a little more for gasoline as we head into the holiday weekend.
Crude Oil:
The short term outlook is slightly bearish. The market appears to be looking for direction as the last two days of trading have produced a total close volatility of nine cents. Crude closed at $67.96 today, as the week closes look for crude to test the July low of $65.25.