U.S. motorists continue to take the pedal off the metal, with increasing gasoline supplies and forecasts for a reduction in driving over the Thanksgiving holiday causing prices to made new lows this week. Crude oil futures broke below $53 a barrel, opening the door to a test of $50 if the market can't quickly recover. While that's about as low as most analysts are calling for, uncertainty continues to limit buying.
All this is good news for farmers, of course. Diesel prices fell sharply again in the latest week, dropping more than 12 cents a gallon. However, diesel inventories also dropped sharply in the latest week, as farmers continue to burn fuel trying to bring in a late harvest and refiners concentrate on heating oil. That's helping to support basis, keeping cash diesel well above heating oil futures.
To read Bryce Knorr's complete weekly energy review, click HERE.
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