What a month. It is Energy Thursday and the roller coaster continues. The Energy complex has seen a week of ups and downs, to land about flat for the week. The story has been the day to day saga over Greece and its finical hardship and the constant dichotomy of the state of our economy; it seems to change with the wind. One thing is for certain crude and product are on the rise again. Crude jumped about $2 today and diesel and gas are both up a few cents. Tomorrow is the last day of trade for both the June futures heating oil and RBOB contract, which could drive the numbers south as some profits are taken. The month of April added about .15 cents to the market.
There is still a lot of talk about China's demand causing mid summer spikes of $100 crude, but I think the lingering effects of our economic short fall should keep a lid on $100 crude. Reuters reported 2010 crude should average about 81.10, leaving a little room for a $90 run, which would most likely get gas and diesel up by about .25 or more mid summer. Also remember the largest holder of crude contracts in the world is still under the gun(Goldman Sachs) and position limits are still in the Washington think tank. Time will tell, but budget a little more for fuel in the coming months.
I am Zach Winter, out.
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