Thursday November 12th, 2009

Good evening readers. Its Energy Thursday. It is becoming a theme,Energy losses, it seems the past couple of weeks my story reads the same. Three days of gains on the Energy market followed by a bearish DOE report, which gives all the gains back. It is what they call a sideways trend, with subtle twists. The twist is, every so often the gains or losses are too great or too little and we begin a new sideways trend. Today was our weekly reminder demand is down. The DOE report was released today due to the Veterans Day Holiday, and it caused a free fall. Crude dropped $2.34, gas and diesel both fell by .05 cents plus. DOE figures showed builds on crude at 1.8 million bpd, with refinery utilization down .7 percent, dropping overall refinery capacity to 79.9 percent. Gasoline had monster builds of 2.5 million bbl's; expectation were for inventories to remain unchanged. Diesel had builds of 300,000 bbl's, which early week analysts predictions were draws of 300,000 bbls. Demand figures continued to disappointed with gas down 1% on a four week average from last year. Diesel demand was down 13.8% from last year, both indicators of the economy still lagging. My short term outlook is somewhat neutral. Combined today's dollar gains and the DOE report information and losses don't seem as bad as they could of been. As with most things, memory is short term so look to see a flat day tomorrow with potential for small gains. It seems that the DOE report data affects or is it effects, the market for about a day and then its back to the dollar. "It's all about the dollar these days", my grandfather told me this twenty years ago, I just didn't know what he meant.
Signing OFF
Zach