Prices for December 17th, 2009
| HEATING OIL cents per gallon | | MONTH | HIGH | LOW | SETTLE | CHANGE | | JAN | 198.00 | 192.71 | 195.74 | dn 00.84 | | FEB | 200.00 | 194.69 | 197.63 | dn 01.10 | | MAR | 201.25 | 195.98 | 198.92 | dn 01.23 | | APR | 201.77 | 196.55 | 199.42 | dn 01.23 | | MAY | 200.43 | 197.60 | 200.22 | dn 01.27 | | JUN | 202.42 | 198.79 | 201.15 | dn 01.28 | | JUL | 202.99 | 201.90 | 202.71 | dn 01.37 | | AUG | 205.50 | 203.97 | 204.66 | dn 01.61 | | SEP | 207.13 | 206.00 | 207.01 | dn 01.81 | | OCT | 209.62 | 209.59 | 209.53 | dn 01.98 | | NOV | 212.20 | 211.12 | 211.95 | dn 02.12 | | DEC | 216.83 | 212.25 | 214.37 | dn 02.28 | | Estimated Volume (day before) total all prev day 108,238 | | NYMEX CRUDE OIL dollars per barrel | | MONTH | HIGH | LOW | SETTLE | CHANGE | | JAN | 73.13 | 71.21 | 72.65 | dn 00.01 | | FEB | 74.97 | 72.91 | 74.08 | dn 00.30 | | MAR | 75.94 | 73.73 | 74.89 | dn 00.43 | | APR | 76.60 | 74.50 | 75.56 | dn 00.53 | | MAY | 77.14 | 75.04 | 76.16 | dn 00.58 | | JUN | 77.99 | 75.71 | 76.75 | dn 00.57 | | | | | | | | | Estimated Volume… 715,755 Opec Basket…$72.17 up $1.33
Prompt #2 Oil NYH 88..-3.00 to -2.50, 74 Lo S…-2.50 to -2.00
US Gulf 88 grade…-5.00 to -4.50, 74 grade Lo S…-4.75 to -4.25 Group .........-3.00 to -2.50 Lo S.....-3.00 to -2.50
Chicago ......-8.00 to -7.50
cash quotes by Dow Jones | | | |
| NYMEX RBOB GASOLINE cents per gallon | | MONTH | HIGH | LOW | SETTLE | CHANGE | | JAN | 188.50 | 182.63 | 185.20 | dn 02.19 | | FEB | 198.25 | 185.25 | 187.84 | dn 02.19 | | MAR | 193.76 | 188.25 | 190.44 | dn 02.19 | | APR | 204.11 | 200.32 | 202.43 | dn 02.20 | | MAY | 204.36 | 201.60 | 203.77 | dn 02.10 | | JUN | 207.25 | 202.76 | 204.99 | dn 01.98 | | JUL | 205.08 | 203.40 | 205.35 | dn 01.89 | | AUG | 205.31 | 204.98 | 205.42 | dn 01.85 | | Estimated RB Volume day before 83,193 | | NYMEX NATURAL GAS dollars per mmBtu | | MONTH | HIGH | LOW | SETTLE | CHANGE | | JAN | 5.911 | 5.454 | 5.768 | up 0.306 | | FEB | 5.940 | 5.510 | 5.800 | up 0.287 | | MAR | 5.894 | 5.502 | 5.787 | up 0.285 | | APR | 5.850 | 5.529 | 5.757 | up 0.257 | | | Estimated Volume…day before (289,945)
Nymex statistics are based on composite Access & Day Sessions
Prompt Gasoline NYH M5 -1.50 /-1.00 RBOB +5.00 /+6.00
US Gulf M4: -4.00 to -3.75 RBOB +1.00 to +1.25
L.A. Conv Reg 197.00-198.00, N-grade Group 182.70-182.95 Chi 180.70-181.20 | |
Market Review for Thursday
HE US dollar continued its amazing recovery yesterday, although there was some selling later in the day, after the regular session ended. They have jumped more than 5% (against the euro) in two weeks, which is impressive in a currency. The dollar’s ascent has been almost linear, and it has certainly been the result of a fair amount of short-covering. Its interest to us, though, is in its strength, which has curtailed the wanton buying of index funds by investors with more money than imagination. Prior to the runup in the dollar, though, these investors had seemingly started to lose interest in buying oil against the dollar, largely because they could have made so much more buying gold.
The dollar has rallied every day this week, so far, and its strength has not been consistently reflected by lower oil quotes. Of course, we do not see investors lining up to buy short-only oil funds the way they buy when the dollar is weak, but arbitrageurs see the much higher dollar and see an opportunity to sell dollars and sell oil. They seem to have sold oil yesterday.
| Fuel for Thought Bloomberg reported yesterday that the index of leading US indicators has risen for an eighth consecutive month with November’s gains, signaling that economic recovery is likely to continue into 2010. With the notable exception of employment, the majority of indicators has been improving steadily recently. The New York Conference Board reported that its outlook for growth over the next two quarters rose 0.9% in November, tripling the increase seen in October. A longer factory workweek, rising equities, increased building permits and an increase in the money supply were all factors that were seen as being bullish for the economy. Unemployment remains the biggest drag on growth, with consumers behind 70% of GDP. |
Oil prices were mostly lower yesterday, and the longs, who have been holding positions for most of 2009, are trying to support prices. We also have had fundamental buying this week, based on draws in crude oil and distillate stocks. But, one look at inventories on page 8 shows a less-than-bullish picture. Stocks dropped, but they did not drop much on the charts. Someone looking back at this week, strictly through the inventory charts, will hardly see an epic change in the supply picture. The year-on-year surpluses are coming in, but that has more to do with the levels that existed a year ago than it does with any sudden surge in demand.
We did see an increase in distillate demand, of 472,000 bpd. But that still only bumped consumption up to less than 3.8 million bpd. That is a far cry from the 4.5 million bpd and more that one might normally expect during bitterly cold weather. And, only time will tell what continuing cold weather will do for future demand. The draw in crude was the result of historically low imports and not a surge in refinery runs (they were lower), so that number is also qualified. The bottom line is that fundamentals are improving, but they still do not justify higher prices; they could justify lower prices, though.
Technicals
Oil prices were lightly lower yesterday, with the expiring January crude oil contract off just a penny. Gasoline prices were the weakest of the complex and now seem headed for a test of the 181.24 low reached last Friday. Crude oil prices are further from their major support at $68.59 while heating oil is well above 188.90 and then 187.00.
Dollars per barrel
Above: Crude oil prices were unchanged yesterday, but the trend lower still looks to remain intact.
January crude oil now has buy-stops over $73.15, $73.55, $73.90, $74.40, $76.10, $77.90, $78.59, $79.05, $79.95, $80.33-$80.52, $81.06, $81.58, $82.00, $84.83, and $85.13. Sell-stops are under $71.20, $70.55, $69.30, $68.55, $68.00, $65.80-$66.20, and $64.95. January heating oil has buy-stops over 198.00, 200.85, 202.50, 204.75, 208.80, 209.70, 210.00, 211.17, 212.12, 216.07, 225.80, 227.05, 229.08, 238.95, 249.62, and 251.50. Sell stops are under 192.70, 191.00, 190.00, 189.55, 188.70, 187.00, 186.50, 182.63, 177.00, 176.68, 173.75, 171.10, 170.35, 168.60, 167.65, and 166.90. January RBOB has buy-stops over 188.50, 189.80, 192.80, 195.41, 198.60, 204.10, 206.15, 207.62, 209.53, 211.24, 214.00, 222.70, and 228.86. Sell-stops are under 182.40, 181.20, 179.20, 177.30, 175.14, 171.40, 170.25, and 168.85.
Football: The bears were stopped at the line of scrimmage, making it a hard fourth and 42 to go today.
Technical Support & Resistance
Jan crude oil Support: $71.20-$71.30, $70.55-$70.65, $69.30-$69.45, $68.55-$68.70, $68.00-$68.15.
Resistance: $73.45-$73.55, $73.70-$73.85, $74.25-$74.40, $75.90-$76.10, $77.75-$77.90.
Jan heating oil Support: 192.70-192.85, 191.00-191.15, 190.00-190.20, 188.70-188.90, 187.00-187.15.
Resistance: 197.70-198.00, 200.70-200.85, 202.35-202.50, 204.60-204.75, 208.65-208.80.
Jan Rbob Support: 184.95-185.10, 182.40-182.60, 181.20-181.35, 179.20-179.35, 177.30-177.45.
Resistance: 188.40-188.50, 189.65-189.80, 192.65-192.80, 195.16-195.41, 198.50-198.60.
Oil Inventory Reports
This week’s DOE report was predominantly bullish with larger-than-expected declines in crude oil and distillate stocks. And distillate had a strong move to the demand side of the supply-demand equation, gaining 740,000 bpd between higher demand and lower output. Imports grew by 44,000 bpd, which cut the move to 696,000 bpd. All three stock levels improved in the year-on-year category, with the distillate surplus dropping from 30.4 million bbls (22.20%) to 25.30 million barrels, and the gasoline surplus falling from 11.6 million barrels (5.675) to 10.3 million bbls. Crude went from 14.1 mln bbls to 9.5 mln bbls.
Distillate stocks are now 25.3 million bbls, or 18.19%, higher than a year ago. Heating oil inventories are 6.5 mln bbls, or 15.55%, higher than they were a year ago. Gasoline stocks are 10.3 mln bbls (up 4.98%) higher against a year ago. Crude oil stocks are now 9.5 million bbls, or 2.94%, higher than a year ago. Residual stocks are 1.3 mln bbls (3.44%) lower than a year ago, jet fuel stocks are 3.1 mln bbls, (8.18%) higher than a year ago. Utilization is 4.15% lower than a year ago and 9.90% below the eight-year average. It is 12.10% lower than the four-year, pre-Katrina average and 7.70% below the average after it.
This Week’s Demand:
Four-week, total refined products demand came in at 18.766 million bpd, up 0.267 mln bbls on the week, and down 0.318 mln bpd and 1.67% against a year ago. Nine weeks ago, it was 0.900 mln bpd and 5.03% higher than a year ago. Four-week gasoline demand is at 9.003 mln bpd, up 1.02%, compared to up 6.23% nine weeks ago. Four-week distillate demand is now at 3.588 mln bpd, down 6.56%, compared to down 14.80% five weeks ago. Four-week jet demand is now at 1.490 mln bpd, up 0.70%, compared to up 0.14% a week ago and 1.61% two weeks ago. Four-week residual fuel demand is at 0.505 mln bpd, up 4.63%, compared to down 1.19% four weeks ago. Propane use is up 17.07%, at 1.440 mln bpd, compared to being up 17.63% four weeks ago. Demand was higher almost across the board.
This Week’s API Report:
This week’s API report showed a build of 0.924 mln bbls in crude oil stocks, a draw of 2.604 mln bbls in distillate stocks and a build of 2.074 mln bbls in gasoline inventories. Utilization was down 2.8% to 78.6%. Implied demand came in at 9.356 mln bpd in gasoline and at 4.385 mln bpd in distillate. Crude oil imports dropped 0.688 mln bpd to 8.853 mln bpd, which helped to give a build in crude oil stocks. The increase in crude stocks and decline in utilization were unexpected.
DOE Weekly Inventory Statistics
| Category | Final DOE Estimate
This Week’s Estimate | History
Last Year’s Report | Most Recent Changes
This Week’s DOE Report | Versus A Year Ago
Millions of Barrels |
| Distillate | dn 0.50 to 1.00 mln bbls | up 2.936 | up 1.619 mln bbls | up 30.400 |
| Gasoline | up 1.75 to 2.25 | up 1.295 | up 2.253 | up 11.600 |
| Crude oil | dn 1.00 to 2.00 | up 0.525 | dn 3.823 | up 14.100 |
| Utilization | dn 0.0% to 0.5% | dn 3.3% at 84.1% | up 1.44 at 81.10% | |
| Crude Imports | up 0.250 to 0.750 mmbd | dn 0.286 to 9.673 | dn 0.264 to 8.137 mln bpd | |
| DOE Distillate Demand | 3.320 mln bpd | dn 259,000 | Gasoline Demand | 9.012 mln bpd | up 069,000 |
| DOE Distillate Production | 3.994 mln bpd | up 090,000 | Gasoline Production | 9.163 mln bpd | up 138,000 |
| DOE Distillate Imports | 0.185 mln bpd | up 049,000 | Gasoline Imports | 0.750 mln bpd | dn 350,000 |
Source: US Department of Energy’s Energy Information Administration
Open Interest Analysis
Crude oil open interest rose by 1,059 contracts on Wednesday, when prices were higher. That looks like light new buying and is mildly supportive.
Heating oil open interest grew by 3,732 contracts on Wednesday, when prices were higher. That looks like new buying and would be supportive.
RBOB open interest fell by 265 contracts on Wednesday when prices were higher. That looks like short-covering, which would be bearish.
Natural gas open interest fell by 13,316 on Wednesday, when prices were lower. That looks like long liquidation or profit-taking, which would be supportive.
Wednesday’s Open Interest Changes:
Crude 1,218,159 up 1,059 Heat 306,035 up 3,732 RBOB 234,185 dn 265 Nat gas 727,852 dn 13,316
CFTC Commitments of Traders for Nymex (for the period ended Tuesday, Dec 8th)
We have changed our section on commitments of traders, and will be modifying into 2010 to deal with new details.
In the latest CFTC Commitments of Traders report, on the ICE, Producers added 17,359 new long and added 31,171 short futures contracts. Swap Dealers liquidated 786 long and covered 5,816 short futures contracts. Managed Money liquidated 1,762 longs and covered 9,852 shorts. That shows heavy producer selling. On the Nymex, Managed Money liquidated 11,080 longs and added 11,645 shorts, while Producers added 2,997 longs and added 2,104 shorts. Swap Dealers bought 9,676 longs and added 1,651 shorts, making them the best buyers. Crude oil prices dropped $5.75 over the latest period, so it seems that liquidation and new selling by managed money accounts was the best selling. Other reportables did the best buying as prices dropped, adding 10,082 longs and covering 4,067 shorts. New producer selling was the motive force, and was bearish.
In heating oil, combining all platforms, Managed Money accounts were kicking out both longs and shorts, liquidating 4,091 longs and covering 2,685 shorts. Producers bought into weakness, as prices dropped 8.71 cents, adding 1,233 new longs and only 202 new shorts. Swap Dealers were also buying into the weakness, adding 1,880 new longs and 568 new shorts. Managed money long liquidation was the best selling in this market.
In gasoline, combining all platforms, Producers added 874 longs and covered 14,134 shorts. Swap dealers liquidated 1,217 longs and covered 385 shorts. Managed Money accounts liquidated 11,526 longs and covered 502 new shorts. Other reportables liquidated 838 longs and covered 688 shorts. Here, managed money long liquidation generated the best new selling. In both refined products, it was liquidation of managed money accounts pushing prices lower. It is potentially bullish.
Natural Gas & Utility Generation
Natural gas prices erupted higher yesterday as traders reacted to a record high withdrawal from storage for this time of year. At 207 bcf pulled from underground storage facilities, yesterday’s withdrawal exceeded by a huge amount the estimates calling for a pull of 176-177 bcf. Since estimates had ranged as high as 200 bcf (for the drawdown), no one expected a draw of this magnitude. It suggests restocking by companies in addition to strong space-heating demand. And it also suggests that cold weather forecasts will be able to eat into storage surpluses, even without any dramatic increase in industrial baseload demand.
Weather forecasts also suggest that the bitterly cold temperatures engulfing the North will continue through the end of the month and into January. Cold weather in he heart of winter (December 15th to January 31st) is the primary determinant of consumption, and we clearly have a colder than normal trend in place right now. Until and unless we suddenly get a warm spell, which is not predicted by anyone on the horizon, we must expect this bitterly cold weather to continue. Since the weather is discounted three times – first as a forecast, second as a present reality and third as an influence on storage withdrawals – we must expect the bullish trend to continue.
We have swing objectives to levels above $7.00/million Btu. At this stage, we have little doubt that those figures are possible, even likely. While managed money accounts have given us no indication that they will stop selling futures, producers and commission houses, along with old-line speculators, are likely to keep bidding prices higher. There will be producer hedging, but the cold weather and very real demand will keep commercial accounts buying through the end of the month and possibly longer. This week’s steep withdrawal will serve to reinforce this trend. Expectations for next week’s report are already likely to be revised higher on the draw side.
In cash trading yesterday, Henry Hub prices were at $5.60-$5.75, up $0.08 and down $0.21 on the day (DJN). SoCal prices were at $5.50-$5.85, down $0.02 and up $0.17 on the day. El Paso Permian prices were down $0.02 and up $0.08 at $5.35-$5.55. Katy prices were up $0.05-$0.13 to $5.55-$5.65. Waha prices were up $0.07-$0.13 at $5.49-$5.54. Transco 6 was down $0.25-$1.99 to $8.25-$8.76/mmBtu, according to Dow Jones News (DJN). Cash prices did not have time to react to yesterday’s move in futures or to the storage numbers. They will be higher today, we believe.
Palo Verde prices were last quoted at $46.75-$48.75/mwh. Northeastern prices last traded at $51.00-$75.00. Entergy was last at $45.75-$46.25. Ercot was last at $43.00-$44.25/mwh.
Support is at $5.42-$5.45, $5.31-$5.33, $5.19-$5.21, $5.12-$5.14, $4.96-$4.99, $4.83-$4.85, $4.64-$4.66, $4.40-$4.43, $4.15-$4.17, $4.05-$4.08, $3.73-$3.75, $3.66-$3.68, $3.50-$3.53, $3.44-$3.46, $3.28-$3.32, $2.91-$2.93, $2.80-$2.82, $2.74-$2.75, $2.69-$2.70, $2.62-$2.64, and $240-$2.43. Resistance is at $5.82-$5.86, $5.91-$5.92, $5.96-$6.01, $6.15-$6.17, $6.34-$6.37, $6.65-$6.69, $6.90-$6.94, $7.01-$7.04, $7.28-$7.31, and $7.34-$7.36.
Jan Natural Gas: Support: $5.42-$5.45, $5.31-$5.33, $5.19-$5.21, $5.12-$5.14, $4.96-$4.99, $4.83-$4.85.
Resistance: $5.82-$5.86, $5.91-$5.92, $5.96-$6.01, $6.15-$6.17, $6.34-$6.37, $6.65-$6.69.
Natural gas prices soared yesterday, making the objective to $7.066 seem more likely each day.
Dollars per million Btu
The crude-to-gas ratio ended yesterday at 12.60-to-one, its lowest since March 25th, when it reached 12.19-to-one.
Dollars per million Btu
EIA Weekly Storage Figures
Last week’s EIA report showed a draw of 64 bcf on expectations for a draw of 47-48 bcf. Stocks are now 472 bcf higher than a year ago, against a surplus of 470 bcf a week ago, a surplus of 404 bcf two weeks ago and a surplus of 347 bcf three weeks ago. Stocks are now 14.30% higher than a year ago. They are 487 bcf and 14.54% above the five-year average.
For this week, the eight-year average was a draw of 119.88 bcf. The five-year average was a draw of 120.2 bcf. Last year, there was a draw of 124 bcf. Estimates are for a draw of 176-177 bcf today.
EIA Report
| Region | 12-04-09 | 11-27-09 | Change | Last Year | 5 Yr Avg |
| Cons East | 2061 | 2092 | dn 31 | 1879 | 1870 |
| Cons West | 517 | 526 | dn 09 | 465 | 436 |
| Producing | 1195 | 1219 | dn 24 | 956 | 954 |
| Total US | 3773 | 3837 | up 64 | 3301 | 3260 |
Bcf, or Billions of cubic feet. Source: Energy Information Administration, US Department of Energy
News & Views
| In trading on Nymex, January crude oil prices were up $0.25 at $72.90/barrel at 1:30 AM EST, this morning. January heating oil prices were up 0.11 cents to 1.9585/gallon. January RBOB prices were up 0.14 cents to $1.8534. January natural gas prices were up $0.048 to $5.816/mmBtu. Prices were mildly higher yesterday as traders reacted to colder-than-normal temperatures in the US and in Europe. The National Oceanic and Atmospheric Administration (NOAA) is now saying that it will be colder than normal from January through March, and that reinforced the belief that cold weather will eat into inventories across the planet. Iran yesterday petitioned the UN on an “unlawful attack” on an Iranian-flagged fishing boat in the Persian Gulf in September. Two vessels from an American destroyer reportedly attacked the boat on September 15th. The vessel was searched before being fired upon and sunk, Iran says. 
Crude oil prices were off a penny yesterday in a session that saw the bulls and bears fighting for control. We still feel that the resistance overhead and trend are pointing to lower levels here. | 
Heating oil prices were slightly lower yesterday, but they still have support beneath the market. Depending upon how one draws the line, there is still line support under prices.. General Electric noted that world-wide orders for a wide range of products has been increasing this quarter, and it expects orders “will be improving sequentially as we get into the fourth quarter of the year.” In other news, Caterpillar Inc said that it hopes to bring back workers in 2010 as orders for bulldozers and excavators have been strong. The company cut 18,700 jobs last year. Heavy equipment orders are strong and inventories have been pared back, which suggests the need to produce more in the year ahead. That could turn out to be the best hope for employment gains, which remain the weakest part of the economy. Oil Movements is predicting another uptick in Opec output in the four-week period ending January 2nd. It is calling for an increase of 0.8%, or 180,000 bpd, to 22.96 million bpd. All of the higher output and presumably a number of barrels no longer going to the US are earmarked for Asian refineries. Asian demand must be even stronger than thought, with US crude oil imports at their lowest levels in years. |
| Oil prices were back down yesterday, and they could test support. | |
The stronger dollar has done precious little in terms of pushing oil prices lower, highlighting the fact that it is only when it is weak that it triggers investor purchases of long-only index funds. Oil fundamentals are improving, but the charts on page 8 show just how much more is needed before they become bullish in any absolute terms.
An Illustrated Look at Energy Market Factors
A Look at the US Dollar Versus the Euro
Dollar-Euro (dollar in euro cents): Six-Month Bar-Chart 
The US dollar advanced sharply yesterday, although it had the look of last-gasp short-covering and prices were lower in trading last night. Nonetheless, it will take some heavy and sustained selling to turn quotes back down. The bottom in place looks like it could last for a while.
Source: http://www.advfn.com/p.php?pid=forexqkchart&curcode1=USD&curcode2=EUR
A Look at the Dow Jones Industrial Average (djia)
Dow Jones Industrial Average: Six-Month Chart
The DJIA dropped almost 133 points yesterday as traders reacted to a less than favorable unemployment report. Prices are still near enough the highs to turn back up, but this market looks awfully heavy right now, at these levels.
Source: http://money.cnn.com/quote/chart/chart.html?symb=djia&sid=1643&time=6mo&Submit1=Refresh
A Look at Inventories
A quick look at the charts above tells a story. This week’s DOE report showed good draws in both crude oil and distillate stocks. But, they barely register on these charts, telling us a bigger story. This week’s numbers were supportive, but they did not change the picture all that much.
A Look at Imports
Thirteen-week crude oil imports have dropped off a cliff and are at greatly depressed levels.
Recommendations for Specific Market Segments
Heating Oil Distributors Heating oil prices are the strongest of the complex right now, supported largely by the bitterly cold temperatures throughout the North right now. This week’s DOE report helped, but in absolute terms, the supply-demand balance remains bearish. One look at the inventory charts on page 8 shows how little impact this week’s stock draws had on crude oil and heating oil stocks. They are still on the high side. In the case of distillate, it will take a cold winter to eat into stocks. It looks like we may get just that, though. We would continue to hold capped-price protection in place, despite the fact that we expect crude oil and gasoline prices to weaken. Cold temperatures could make heating oil the darling of the complex and it is unwise to be unhedged here. Hold what you have, and we would use dips to add to the capped-price protection. Do not use futures or fixed-price programs in case prices do end up falling or the weather warms. Diesel Users We would hold capped-price protection, adding to it on dips. NYH Ultra Low Sulfur Diesel.…193.50-194.00 minus 2.000 USG Ultra Low Sulfur Diesel.…192.00-192.25 minus 3.625 Jet/Kerosene Users & Airlines New York Harbor cash market differentials were 3.25 to 3.75 cents over January heating oil in NY Harbor and 0.25 under to 0.75 even with the screen in the US Gulf. Diesel & Gasoline Marketers We want to be hedged against downside risk because of poor fundamental factors. The near-term trend is lower, here. Gasoline Blenders & End-Users We would look to re-enter puts if prices advance more from here. Prices still seem on the high side here. Prompt NYH Fuel Ethanol…..204.00-206.00 Prompt USG Fuel Ethanol….197.00-199.00 Quotes from 12-16-09 Heating Oil End-Users We would hold onto capped-price product, adding on dips. Speculators We want to buy puts on any fair rally from here. The momentum lower has stalled, and this could be an opportunity. We would keep positions on the lighter side, now. Refiners The 7:5+2 crack spread was $6.40 yesterday. Crude Oil Producers Crude oil prices were slightly lower yesterday, and we see the possibility of lower quotes from here. We would trade this market lightly. | Prompt Jet Fuel Prices New York Harbor 199.00-199.50 US Gulf 195.50-195.75 Midwest (Group Three) 196.75-199.75 Midwest (Chicago) 194.75-196.75 Los Angeles 198.00-199.00 San Francisco 198.00-199.00 Portland, Oregon 198.00-199.00 Cents per gallon Wednesday Prices Propane Prices Mont Belvieu……….…..non-TET………$1.160980 Cents per gallon  Gasoline prices dropped yesterday and they may soon make an attempt to break the support at 181.24, last Friday’s low. Prices do not yet seem to have found a bottom and the trend still seems pointed lower.
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