Good evening blog readers. It is once again Energy Thursday. This week has been another up tic week on the energy market. Diesel prices have jumped this week another .10 cents or so, until today's .03 cent losses. Apparently analysts comments yesterday regarding poor demand fundamentals in combination with expectations for a rise in tomorrows unemployment data gave the bears enough weight to pull crude back under the $80 mark. Yesterdays DOE report showed draws across the complex. Pre-report trade had the market working higher and once the report came out, the large crude draw of 4 million bpd caused a .50 cent jump. But overall refinery utilization was down 1% and crude imports were down about 8.9 million bpd this gave way to demand discussions. With gas unchanged from last year this time and diesel down 14.8% from last year the market cooled quickly with end of day gains of less than .02 cents on product and under a buck on crude. It appears demand numbers are actually effecting trade two days in row. Adding to the bearish momentum is expectations of job data reporting another 175,000 jobs lost in October, and a calling for the highest unemployment rate in 26 years at 9.9%. Tomorrows unemployment report will most likely set the tone for the entire market, it could be the catalyst which sends crude back to the 70's and I don't mean $17.50 a bbl, but the upper 70 dollar range. Things feel bearish at close tonight, hopefully you feel better about a solid day of harvest.
Signing off
Zach Winter
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