Morning Petrospective – October 18, 2011

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n a number of respects, it was all ‘too good to be true.’ No, clearly, we do not mean higher oil prices. We mean higher asset prices during a week in which the last piece of European news had been the Slovakian “no” vote the previous Friday. We managed to go through all of last week’s trading without any sign of worry that the vote might not be retaken easily and without some expensive form of “persuasion” which might be too much for Germany’s conservative financial leaders. So, when we came back to start this week, we should not have been surprised that euro-debt was up front.

There is a summit meeting set for Sunday and global investors were trying to line up a mental image of smoothness with 17 different political leaders arrayed on stage for global consumption. The fear that came out yesterday was that some of these leaders might have more pressing national political objectives than the seemingly urgent needs of the larger financial confederation. And investors had trouble breaking away from that very real identity – a “larger financial confederation” – which is what the euro-zone is, at heart.

It is trying to grow into a type of larger political union, but the polity imagined by so many is still years away from being realized. That reality is likely to intrude on the clear financial objectives held by bankers in London, Paris, and Berlin – especially when political desires for more attentiveness (by others) towards those in Bratislava (and other capitals) wiggle into the equation.

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FMX Newswire

FMX Newswire is an overnight news summary designed to meet the needs of professional energy traders. The content is to-the point, professional grade and not widely reported in the mainstream media. All sources are professional respected firms and newspapers.

Platts Oil

  • US retail gasoline prices are on the rise, with the average for regular climbing 5.9 cents to $3.476/gal the EIA survey week ending Monday
  • Tax credit for ethanol expiring; coalition for E85 formed to amend federal tax law
  • Premiums for NWE ULSD cargoes at 40-month high on lack of prompt supply.
  • Shell says 'too early' to assess financial impact of Singapore oil & petchems refinery fire

Bloomberg

  • Oil Drops For a Second Day After China’s Economy Grows Slowest Since 2009
  • Gas Beating Oil in Shipping Market as Consumers Expand Stockpiles: Freight
  • Tallow Replaces Crude Oil as Biofuels Go to War

Technical Recap

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