Trader Dan Norcini
I
have been watching developments in the crude oil and unleaded gasoline
markets with a great deal of interest. This week’s numbers from the EIA
and other private sources shocked the market due to the extent of the
drop in crude at Cushing and sent both markets on a tear higher. Crude
is now trading close to $106/bbl as I write this and unleaded gasoline
has pushed above the $3.10 mark (remember – that is a wholesale price
not the pump price).Frankly I do not see the US economy as strong enough to support either crude or unleaded gasoline at current prices but right now hedge funds are driving these markets higher and the momentum is strong to the upside. There certainly is no shortage of WTI from what I can see but a goodly portion of it appears to be leaving the US via exports to the EU and elsewhere.
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