Malcolm Graham-Wood
Independent Analyst
Little change yesterday, except maybe that the differential, which had got down to as low as $1.77 and bounced to over $5 crept back to $4.83. The physical market is directionless, traders telling me that buyers remain off the market trading only what they need, waiting for something to happen.
Will that thing be the Fed we ask? With the meeting starting today, tomorrows announcement will likely end QE but keep interest rates down but bear in mind that a 25% fall in the oil price, which is what we have had in less than two quarters is like having a QE delivery but from the oil producers, they are getting it in reverse. Last week I mentioned retail gasoline prices in the US, this weeks figures show another big fall with pump prices down another 6.4 cents on the week to $3.06 a gallon, not long before the Shermans are cruising along at sub three bucks gas.
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