Energy - lower as dollar gains against Europe’s problems including France. September crude oil is trading $0.38 per barrel lower to $82.76 compared to $82.64 yesterday at this time. September heating oil is lower by 0.76 cents per gallon to $2.8573 compared to $2.8751 at this time yesterday. September RBOB gasoline is trading lower by 0.22 cents per gallon to $2.7803 compared to $2.7633 per gallon at this time yesterday. The Brent – WTI crude oil spread narrowed from $24.50 to $23.69 per barrel premium to September Brent. Yesterday, huge DOE stock draws supported the energy complex despite a rebounding U.S. dollar trade. Today’s dollar trade remains positive and in a higher trading range than yesterday. This strength is to the expense of the euro and pressures commodities.
The energy complex is looking for something to lean on. At times, it follows the currency markets and at time it follows global equities. All have been extremely volatile and unpredictable. Fundamentals appear in the back ground as are the massive geopolitical risks we face. We are seeing this market whipsawed daily, but the declining economic outlook has lessened the demand for energy and the outlook. Global consumers are becoming even more cautious as we will all have to foot the bill someday for all this nonsense.
