Thursday December 17th, 2009

Good evening blog readers. The energy market closed relatively unchanged today, but has seen a bit of change since yesterdays DOE report; 2.5% up from Tuesdays close. The story has been the dollar and with its recent streght it has put a hold on what was a very bullish energy market. The bulls came out on Wednesday after the DOE reported draws of 3.7 million bpd on crude. Diesel had draws of 2.9 million bpd and was the main reason for a single day jump of .06 cents. Four week demand is still down about 6.5% on diesel and up about a 1% on gas. Refinery utilization is up about a 1% to hit right at 80% total. We are at an interesting intersection now, does crude still follow the dollar or will we get seperation? After todays trade it appears the dollar is still king, but time will tell. Experts still call for down side in crude with a key nubmer being $67.50, today it closed at $72.65. Look for some profit taking tomorrow as the week closes.
Thanks for reading.
Zach