Prices for January 21st, 2010
| HEATING OIL cents per gallon | | MONTH | HIGH | LOW | SETTLE | CHANGE | | FEB | 203.51 | 197.79 | 198.56 | dn 03.55 | | MAR | 204.65 | 198.95 | 199.75 | dn 03.69 | | APR | 205.18 | 199.65 | 200.40 | dn 03.85 | | MAY | 206.08 | 200.98 | 201.30 | dn 03.92 | | JUN | 206.80 | 201.66 | 202.38 | dn 04.02 | | JUL | 208.60 | 203.57 | 204.20 | dn 04.06 | | AUG | 210.78 | 205.75 | 206.18 | dn 04.08 | | SEP | 213.25 | 207.83 | 208.48 | dn 04.08 | | OCT | 215.47 | 210.71 | 211.07 | dn 04.09 | | NOV | 215.80 | 213.80 | 213.70 | dn 04.14 | | DEC | 221.29 | 215.70 | 216.33 | dn 04.19 | | JAN | 219.97 | 219.35 | 218.85 | dn 04.24 | | Estimated Volume (day before) total all prev day 91,779 | | NYMEX CRUDE OIL dollars per barrel | | MONTH | HIGH | LOW | SETTLE | CHANGE | | FEB | 78.36 | 75.66 | 76.08 | dn 01.66 | | MAR | 78.79 | 76.13 | 76.53 | dn 01.70 | | APR | 79.25 | 76.76 | 77.13 | dn 01.72 | | MAY | 79.85 | 77.35 | 77.74 | dn 01.73 | | JUN | 80.50 | 77.95 | 78.33 | dn 01.74 | | JUL | 80.65 | 78.47 | 78.86 | dn 01.75 | | | | | | | | | Estimated Volume… 534,574 Opec Basket…$75.30 dn $0.23
Prompt #2 Oil NYH 88..-1.25 to -0.75, 74 Lo S…-0.00 to +0.25
US Gulf 88 grade…-5.25 to -5.00, 74 grade Lo S…-3.25 to -2.75 Group .........-5.50 to -5.00 Lo S.....-5.50 to -5.00
Chicago ......-12.50 to -11.50 cash quotes by Dow Jones | | | |
| NYMEX RBOB GASOLINE cents per gallon | | MONTH | HIGH | LOW | SETTLE | CHANGE | | FEB | 206.89 | 197.69 | 198.29 | dn 06.36 | | MAR | 207.83 | 198.85 | 199.44 | dn 06.32 | | APR | 216.80 | 208.56 | 209.01 | dn 06.21 | | MAY | 217.50 | 209.50 | 210.08 | dn 06.03 | | JUN | 217.30 | 210.10 | 210.72 | dn 05.78 | | JUL | 217.18 | 210.56 | 210.70 | dn 05.62 | | AUG | 216.58 | 210.04 | 210.22 | dn.05.57 | | SEP | 215.57 | 209.49 | 209.54 | dn 05.45 | | Estimated RB Volume day before 98,380 | | NYMEX NATURAL GAS dollars per mmBtu | | MONTH | HIGH | LOW | SETTLE | CHANGE | | FEB | 5.719 | 5.480 | 5.615 | up 0.119 | | MAR | 5.675 | 5.452 | 5.568 | up 0.101 | | APR | 5.634 | 5.413 | 5.529 | up 0.091 | | MAY | 5.676 | 5.472 | 5.575 | up 0.087 | | | Estimated Volume…day before (158,071)
Nymex statistics are based on composite Access & Day Sessions
Prompt Gasoline NYH M5 -0.00 /+0.25 RBOB +7.00 /+7.50
US Gulf M4: -3.50 to -3.00 RBOB +2.50 to +3.00
L.A. Conv Reg 197.00-198.00, N-grade Group 191.80-192.05 Chi 191.80-192.80 | |
Market Review for Thursday
RUDE oil futures dropped $1.66 a barrel yesterday, touching their lowest levels since December 22nd. The dollar was relatively steady and equities plunged. And, in a surprising move, President Obama called for a limit on bank size and sought to impose a moratorium on banks holding hedge funds. What that really means, or how it might work in practice, remains to be seen.
This week’s DOE report was ostensibly supportive, at least at first glance. Distillate stocks finally caught up with the cold weather seen a couple of weeks ago, dropping 3.262 million barrels. Crude oil stocks dropped 0.471 million barrels. But, as one dug deeper, the statistics concealed a number of very bearish factors. Total oil supplied slipped 160,000 bpd against a week ago and was down 336,000 bpd against a year ago. Two weeks ago, it was up 0.26% on the year; now, it is 1.76% lower than it was a year ago. The total supplied has fallen by 394,000 bpd over the last two weeks.
| Fuel for Thought The signs, so far, are not encouraging. China is the little engine [of growth] that could … but won’t. The stock market, which had been the jewel in the recovery crown, seems to have come unfastened yesterday. And industrial demand, if distillate is any indication, is so poor that it actually buried the coldest weather use in decades in this week’s DOE distillate four-week demand figure. We are genuinely worried that we are a day or a few away from acknowledging the very real likelihood of a double bottom in the economy. Unfortunately, we are not yet at the second bottom. All the signs out there are telling us that the picture has darkened noticeably over the last two weeks. |
Four-week gasoline demand was 8.956 million bpd, up 0.32%. Now, it is 8.789 million bpd, down 0.23%. Four-week distillate demand was at 3.746 million bpd, down 0.98% two weeks ago; now, it is 3.660 million bpd, down a whopping 6.84%. Oil demand is coming unglued. If it was ever seen as a sign of economic activity, it is now telling us that there is trouble around the corner.
Refinery utilization was down 2.92% to 78.38%, the lowest it has been for any non-hurricane-affected week in 20 years. And crude oil imports are back down 355,000 bpd to 8.540 million bpd, another figure usually only seen after major US Gulf hurricanes.
The draws in inventories were consciously designed pulls, which came about only because of extremely low output – designed for significantly low demand. Refiners could have rotated units in or out of maintenance in this week’s report, granted the only real spare capacity in decades. Instead, they just took units down, and we can’t count on them returning to service any time, soon. This is an extraordinarily weak fundamental picture, and there is nothing suggesting fresh demand on the horizon. Industrial use is anemic.
Technicals
The oil complex was down sharply yesterday, and it looks like prices want to continue working lower from here. In all three cases, prices burst higher at the start of 2010, but they have not been able to hold or build on those gains. There is good support below, in all major oil contracts.
Cents per gallon
Above: Gasoline prices were in a range from 160 to 210 for months. At the least, prices seem to be headed for the lower reaches
March crude oil now has buy-stops over $78.36, $79.31-$79.47, $80.67, $82.35, $83.95, $84.83, $85.13, $89.82, $90.99, $93.02, $96.03, $100.37, $102.85, $106.91, $108.11, $108.70, $109.60, and $110.45-$110.60. Sell-stops are under $75.66, $74.25, $72.70, $71.99, $71.20, $70.55, $69.30, $68.55, $68.00, $65.80-$66.20, and $64.95. February heating oil has buy-stops over 203.51, 204.45, 205.50, 208.10, 210.91, 211.90, 217.55, 222.72, 225.80, 227.05, 229.08, 238.95, 249.62, 251.50, 256.48, 265.89, 273.20, and 288.50. Sell stops are under 197.75, 195.00, 191.00, 190.00, 189.55, 188.70, 187.00, 186.50, 182.63, 177.00, 176.68, 173.75, 171.10, 170.35, and 168.60. February RBOB has buy-stops over 206.88-207.35, 208.30, 214.60, 219.27, 222.70, 228.86, 240.10, 250.40, 252.00, 265.10, 267.85, 270.85, 272.00, and 280.25. Sell-stops are under 197.65, 194.55, 189.65, 185.00-185.15, 184.60, 182.40, 181.20, 179.20, 177.30, 175.14, 171.40, and 170.25.
Football: The bears gained 17 yards on third and six to go here, yesterday, and that gave the bears a new set of downs.
Technical Support & Resistance
Mar crude oil Support: $76.00-$76.20, $75.65-$75.70, $74.25-$74.40, $72.70-$72.85, $71.95-$72.05.
Resistance: $78.25-$78.36, $78.95-$79.05, $79.31-$79.47, $80.55-$80.67, $82.25-$82.35.
Feb heating oil Support: 197.75-197.85, 195.00-195.20, 191.00-191.20, 190.00-190.15, 189.55-189.70.
Resistance: 203.40-203.51, 204.30-204.45, 205.40-205.50, 207.95-208.10, 210.80-210.91.
Feb Rbob Support: 197.65-197.75, 194.55-194.70, 189.65-189.75, 185.00-185.15, 184.60-184.75
Resistance: 206.25-206.35, 207.25-207.35, 208.10-208.30, 214.45-214.60, 219.10-219.30.
Oil Inventory Reports
This week’s DOE report looked much better than last week’s did, but in some respects, it just rearranged where the weaknesses show up the most. We did see a draw in distillate stocks in this week’s report, but four-week demand still managed to decline. Refinery utilization was lower, but really did not need to be, and that suggests that refiners wanted it to be lower, partially because of margins and partially because they did not want any fresh builds in stocks. The most bearish factor in this week’s report was the swift decline in total products supplied over the last two weeks.
This Week’s Inventory Comparison: Distillate stocks are now 12.2 million bbls, or 8.42%, higher than a year ago. Heating oil inventories are 1.2 mln bbls, or 3.02%, higher than they were a year ago. Gasoline stocks are 12.0 mln bbls (up 5.57%) higher against a year ago. Crude oil stocks are now 7.5 million bbls, or 2.22%, lower than a year ago. Residual stocks are 3.0 mln bbls (8.38%) higher than a year ago, jet fuel stocks are 4.6 mln bbls, (11.76%) higher than a year ago. Utilization is 4.92% lower than a year ago and 9.60% below the eight-year average. It is 11.72% lower than the four-year, pre-Katrina average and 7.47% below the average of the four years since the big hurricanes (Katrina & Rita) in 2005.
This Week’s Demand: Four-week, total refined products demand came in at 18.798 million bpd, down 0.394 mln bbls on the week, and down 0.336 mln bpd and 1.76% against a year ago. Two weeks ago, it was 0.050 mln bpd and 0.26% higher than a year ago. Four-week gasoline demand is at 8.789 mln bpd, down 0.23%, compared to up 0.32% two weeks ago. Four-week distillate demand is now at 3.660 mln bpd, down 6.84%, compared to down 0.98% two weeks ago. Four-week jet demand is now at 1.375 mln bpd, flat against a year ago, compared to up 8.17% two weeks ago. Four-week residual fuel demand is at 0.471 mln bpd, down 35.11%, compared to down 1.19% nine weeks ago. Propane use is up 14.74%, at 1.596 mln bpd, compared to being up 17.63% seven weeks ago.
This Week’s API Report: This week’s API report showed a draw of 1.802 mln bbls in crude oil stocks, a draw of 3.385 mln bbls in distillate stocks and a build of 0.667 mln bbls in gasoline inventories. Utilization was down 2.5% to 77.3%. Implied demand came in at 8.945 mln bpd in gasoline and at 4.303 mln bpd in distillate. Crude oil imports were up 0.071 mln bpd to 9.800 mln bpd. This report was more in line with what had been expected a week ago; it was bullish.
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 2.25 to 2.75 mln bbls | up 0.790 | dn 3.263 mln bbls | up 12.200 |
| Gasoline | up 2.00 to 2.50 | up 6.475 | up 3.950 | up 12.000 |
| Crude oil | up 2.00 to 3.00 | up 6.100 | dn 0.471 | dn 7.500 |
| Utilization | dn 0.8% to 1.3% | dn 1.9% at 83.3% | dn 2.92% at 78.38% | |
| Crude Imports | dn 0.000 to 0.250 mmbd | up 0.137 to 9.866 | dn 0.355 to 8.540 mln bpd | |
| DOE Distillate Demand | 3.823 mln bpd | up 209,000 | Gasoline Demand | 8.602 mln bpd | dn 138,000 |
| DOE Distillate Production | 3.483 mln bpd | dn 372,000 | Gasoline Production | 8.565 mln bpd | up 054,000 |
| DOE Distillate Imports | 0.272 mln bpd | dn 265,000 | Gasoline Imports | 0.730 mln bpd | dn 162,000 |
Source: US Department of Energy’s Energy Information Administration
Open Interest Analysis
Crude oil open interest rose by 7,628 contracts on Wednesday, when prices were lower. That looks like new buying, which would be a bullish development. Open interest seems to be growing in both directions.
Heating oil open interest fell by 304 contracts on Wednesday, when prices were lower. That looks like long liquidation and would be supportive.
RBOB open interest grew by 5,752 contracts on Wednesday when prices were lower. That looks like new selling and is bearish.
Natural gas open interest fell by 3,636 on Wednesday, when prices were lower. That looks like long liquidation, which would be supportive.
Wednesday’s Open Interest Changes:
Crude 1,332,531 up 7,628 Heat 310,895 dn 304 RBOB 279,147 up 5,752 Nat gas 778,913 dn 3,636
CFTC Commitments of Traders for Nymex (for the period ended Tuesday, Jan. 5th)
Crude oil prices gained $2.90/bbl over the latest reporting period, and the best buying came from producers, who added 5,721 new longs and covered 3,655 shorts. The other categories were net sellers, with swap dealers liquidating 166 longs and adding 5,828 shorts. Managed money liquidated 2,148 longs and added 1,906 shorts. Other reportables liquidated 890 longs and added 2,375 new shorts. These changes were unexpected; we expected more buying by funds, which may have come later.
In heating oil futures, prices gained 7.75 cents a gallon, and the best buying came from managed money accounts. They bought 9,302 new longs against only 1,443 new sales. Swap dealers were minor buyers, with 218 new purchases and 266 covered shorts. Producers liquidated 12,559 longs and covered 2,028 shorts, and other reportables liquidated 1,529 longs and added 514 new shorts. Funds were the ones pushing prices higher in heating oil futures.
Gasoline prices were up 9.60 cents a gallon during the period under review. Managed money added 15,583 new longs and only 118 new shorts. Producers liquidated 10,528 longs and added 6,298 new shorts. Swap dealers liquidated 712 longs and added 122 shorts, while other reportables liquidated 227 longs and added 280 new shorts. Funds pushed prices higher, here.
In natural gas, prices dropped 20.3 cents during the period under review. Large speculators sold 9,624 new contracts, with money managers selling 9,656 contracts. Swap dealers were the best buyers, adding 6,945 contracts, with assorted “other reportables” adding 841 contracts. The short position of money managers is a huge mystery, clearly being spread somewhere.
Natural Gas & Utility Generation
Natural gas prices ended the day with gains of nearly 12 cents per million Btu, as traders reacted to this week’s EIA underground storage report. It showed a drawdown of 245 bcf, against estimates calling for a draw of 217-231 bcf, calculated in surveys conducted by Bloomberg and Dow Jones. This report showed stocks now less than a percentage point above levels seen a year ago and within a quarter of a point of the five-year average for this time of year. In two swift strokes, the surpluses against a year ago and against the five-year average have disappeared. There is no surplus factor, now.
This is an amazing pass we have come to. For the better part of the last year and a half, traders have been trying to discount these two surpluses. When we started this winter, many did not feel that the surpluses would be addressed even by spring. Here, it is, not yet even three weeks into the new year, and the surpluses are gone. Right away, this takes away the biggest reason anyone has had to sell prices lower. At this point, we are in line with previous years; any move in prices now should be based on existing or expected supply and demand.
We feel that prices are probably undervalued relative to the market’s most recent developments. Any forecasts calling for colder temperatures should give us cleaner advances, without any braking need to pull back on the reins because of storage surpluses. In some respects, this market should now be better able to reflect temperature forecasts and supply or demand revisions. It is almost the dawning of a new day in this natural gas market. It will certainly take time for traders to figure out how they can best use a market that has just undergone one of the most sweeping changes in its base-line fundamentals in decades. This is now an inherently neutral market as we approach it each new day.
As we have suggested, we believe that this new market deserves to be at a higher baseline price to reflect the lack of storage surpluses. It may, of course, take time for everyone to come around to that perspective – if they do, at all. Another feature of this report is to increase the value of the weekly Baker-Hughes rig reports. Deferred futures contracts should take more of a cue from these weekly reports, in our opinion.
In cash trading yesterday, Henry Hub prices were at $5.48-$5.57, up 0.04 and down $0.02 on the day (DJN). SoCal prices were at $5.55-$5.64, down $0.11 on the day. El Paso Permian prices were up $0.02 and down $0.05 at $5.30-$5.40. Katy prices were down $0.01 and up $0.05 to $5.40-$5.52. Waha prices were up $0.00-$0.15 at $5.44-$5.45. Transco 6 was down $0.00-$0.07 at $5.97-$6.15/mmBtu, according to Dow Jones News (DJN).
Palo Verde prices were last quoted at $45.00-$46.75/mwh. Northeastern prices last traded at $41.00-$55.25. Entergy was last at $37.75-$38.25. Ercot was last at $39.50-$40.45/mwh.
Support is at $5.42-$5.45, $5.35-$5.38, $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, and $2.69-$2.70. Resistance is at $5.62-$5.63, $5.68-$5.72, $5.78-$5.81, $5.87-$5.90, $5.99-$6.03, $6.09-$6.11, $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, $5.35-$5.38, $5.31-$5.33, $5.19-$5.21, $5.12-$5.14, $4.96-$4.99.
Resistance: $5.62-$5.63, $5.68-$5.72, $5.78-$5.81, $5.87-$5.90, $5.99-$6.03, $6.09-$6.11.
Natural gas prices are still testing the major trendline support.
Dollars per million Btu
Natural gas prices are in a range between $5.35 and $6.11 for now. The trendline is working extremely well.
Dollars per million Btu
EIA Weekly Storage Figures
This week’s EIA report showed a draw of 245 bcf on expectations for a draw of 217-231 bcf. Stocks are now 22 bcf higher than a year ago, against a surplus of 103 bcf a week ago, a surplus of 286 bcf two weeks ago and a surplus of 379 bcf three weeks ago. Stocks are now 0.85% higher than a year ago. They are 6 bcf and 0.23% below the five-year average.
For this week, the eight-year average (of similar Friday reports) was a draw of 163.87 bcf. The five-year average was a draw of 164.2 bcf. Last year’s draw was 176 bcf. Expectations were for a draw of 217-231 bcf.
EIA Report
| Region | 01-15-10 | 01-08-09 | Change | Last Year | 5 Yr Avg |
| Cons East | 1401 | 1532 | dn 131 | 1361 | 1457 |
| Cons West | 396 | 414 | dn 18 | 362 | 341 |
| Producing | 810 | 906 | dn 96 | 862 | 815 |
| Total US | 2607 | 2852 | dn 245 | 2585 | 2613 |
Bcf, or Billions of cubic feet. Source: Energy Information Administration, US Department of Energy
News & Views
| In trading on Nymex, March crude oil prices were down $0.22 at $75.86/barrel at 8.30 AM EST, this morning. February heating oil prices were down 0.47 cents to 1.9809/gallon. February RBOB prices were up 0.54 cents to $1.9883. February natural gas prices were up $0.113 to $5.728/mmBtu. Traders were selling this morning, in response to a number of factors. Chinese credit tightening, sweeping new US banking and trading changes and this week’s DOE snapshot of demand were all seen as bearish factors that were leading to long liquidation and short selling. We are now starting to see the first week of 2010 as one that more properly belongs to 2009. This new year has been, since the second week, dominated by anemic oil use, Chinese reluctance to lead the world economy out of recession and by confusion over new US banking rules and definitions. 
Crude oil prices dropped again rather steeply yesterday. At this time, it represents a significant decline in this market. There is support beneath the market, here. | 
Heating oil prices dropped to new recent lows yesterday, although this market is not wanting for possible numbers above which it might stop at any moment. There is plenty of supply. Despite what we have been seeing on the negative side, the index of leading indicators in the US increased by more than expected in December, suggesting that the economic recovery had been well entrenched as we ended 2009. The index was up 1.1%, its largest gain three months, following a gain of a full percentage point in November. Fewer jobs losses, rising equities and the Fed’s efforts to maintain low real interest rates were among the supportive factors outlined. Opec reportedly supplied 29.120 million barrels per day (bpd) during the month of December, according to a report released earlier today by Petrologistics, a Geneva, Switzerland-based group that tracks oil tanker movements across the world. The group individually placed Saudi Arabian oil movements at 7.61 million bpd in December. Bloomberg recently estimated Opec’s December production at 28.965 million bpd, which is slightly below this most recent report. |
| Crude oil prices are at a critical point, here. | |
This week’s DOE report was supportive at first blush, with draws in crude oil stocks and distillate inventories and a decline in refinery utilization figures. Once we got into the demand figures, though, a less sanguine picture emerged.
An Illustrated Look at Energy Market Factors
A Look at the US Dollar Versus the Euro
Dollar-Euro (dollar in euro cents): Three-Month Bar-Chart 
The US dollar sold off slightly yesterday, but it is still stronger on the week. We have objective to the 72.80 euro area. Prices initially broke below support a week ago, after having consolidated between 69.00 and @ 70.20 euros. This week’s break took prices almost three-quarters of a euro over resistance, giving us our existing objective to 72.80 euros.
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 was down 213.27 points yesterday, and this could be the beginning of the dropping of the “other shoe.” If this decline keeps going, we could be looking at a “W” or double-bottom type recovery.
Source: http://money.cnn.com/quote/chart/chart.html?symb=djia&sid=1643&time=6mo&Submit1=Refresh
Recommendations for Specific Market Segments
Heating Oil Distributors We finally had the movement of product from tertiary to secondary to primary storage (backwards in the statistics) to give us the decent decline in inventories that everyone had known had really happened. The problem is that, even with the great demand of cold weather, distillate four-week demand was still able to decline over the last two weeks. Two weeks ago, the four-week average was 3.746 million bpd, which was down 0.98% against the previous year. This week’s report showed four-week demand down 86,000 bpd to 3.660 million bpd, which is 6.84% lower than a year ago. Even with the cold weather showing up in this latest report, demand just could not help itself. In fact, it managed to worsen. This tells us that baseload, industrial distillate (diesel) demand is miserable. That cannot be a good sign for the economy. We are holding our caps against sudden cold snaps, but we are not worried about any real sudden industrial demand. Diesel Users We would hold capped-price protection here. NYH Ultra Low Sulfur Diesel.…199.30-199.55 plus 0.870 USG Ultra Low Sulfur Diesel.…196.05-196.55 minus 2.250 Jet/Kerosene Users & Airlines New York Harbor cash market differentials were 5.75 to 6.25 cents over January heating oil in NY Harbor and 0.50 under to even with the screen in the US Gulf. We still like locking in differentials. Diesel & Gasoline Marketers We would keep product hedged, because we just can’t tell where prices might next go. We had a rally yesterday. Gasoline Blenders & End-Users This week is likely to be critical in determining if prices are going higher or lower next. Prompt NYH Fuel Ethanol…..186.00-189.00 Prompt USG Fuel Ethanol….179.00-181.00 Quotes from 01-20-10 Heating Oil End-Users We would hold caps. Today’s DOE report should set the tone, and last night’s API report seems to have been more supportive. Speculators We would hold onto long call positions, but would not add now. Refiners The 7:5+2 crack spread was $7.23 yesterday. Crude Oil Producers Despite this week’s drawdown in stocks, very low utilization levels will be fighting with low imports in a weak market. | Prompt Jet Fuel Prices New York Harbor 204.30-204.80 US Gulf 198.05-198.55 Midwest (Group Three) 199.05-201.05 Midwest (Chicago) 192.30-194.05 Los Angeles 199.00-200.00 San Francisco 199.00-200.00 Portland, Oregon 199.00-200.00 Cents per gallon Propane Prices Mont Belvieu……….…..non-TET………$1.278750 Cents per gallon  Ethanol prices have come under heavy selling pressure as corn has dropped dramatically in reaction to record yield and harvest figures recently compiled and released by the USDA.
We effectively have a large “fulcrum” on this chart right now, but it has already gone through the mark-up and mark-down phases. |