Crude oil, heating oil and gasoline fell for two years as high as second-rate increase since October reinforced concern that Chinese economic growth will slow in the largest energy consuming countries, the demand for fuels. Ethanol has been gained.
Trading volume was less than half the average of the last three months on the day after a three-day Christmas weekend. Floor trading on the New York Mercantile Exchange opened two hours later than usual due to a storm that 20 inches (51 centimeters) of snow falling on New York City.
Crude Oil
Crude oil for February delivery fell 51 cents, or 0.6 percent, to settle at $ 91 a barrel on the Nymex. In intraday trading the price reached $ 91.88, the highest since October 7, 2008. Crude has risen from 17 percent in the past year.
Volume was 169,045 contracts traded at 3:32 pm New York time, about one fourth of the daily average three months.
Fuel Fund
Heating oil for January delivery fell 2.42 cents, or 1 percent, to $ 2.5166 a gallon. The decline was the first time in five days. Fuel oil is traded as a proxy for diesel.
Heating oil fell the day after the 14-day relative strength index climbed to 70.2, its highest level since Nov. 10. A reading above 70 may indicate that a commodity is overbought and about to fall. The RSI fell to 64.3 today.
Trading volume was 47,821 contracts at 3:37 p.m., less than half the three-month average.
The February heating oil crack spread fell 53 cents to $ 15.12 a barrel. The one-year average is $ 10.71.
Gasoline
Gasoline for January delivery fell 2.17 cents, or 0.9 percent, to $ 2.4209 per gallon on the Nymex.
The Northeast snowstorm for gasoline in the region “can also temporarily reduce the demand,” said Dan Flynn, an energy analyst with PFGBest Research in Chicago.
Volume traded was 38,182 at 3:37 p.m., approximately one third of the three-month average.
The gasoline crack spread in February fell 30 cents to $ 10.39 a barrel. The one-year average is € 9.50.
Ethanol
Denatured ethanol for January delivery rose for the 13th consecutive day, gaining 1.3 cents, or 0.6 percent, to $ 2,314 per gallon on the Chicago Board of Trade. Futures have advanced 19 percent this year.
Refineries and Communications
Valero Energy Corp. restarted hydrocrackers the Corpus Christi East and West refineries in Texas, Bill Day, a company spokesman, said in an e-mail. The East hydrocracker ended December 22 according to a filing with national regulators. The West hydrocracker closed December 20, Day said at the time.
Petroleos de Venezuela SA Isla refinery in Curacao has a catalytic cracker started and is now producing 203,000 barrels per day of crude oil, Kenneth Gijsbertha, a company spokesman, said today in a telephone interview.
source:bloomberg
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