Fuel Trends

FC Stone reports the energy complex is gaining this morning with crude oil at $84.66 after trading $85.10 yesterday morning at this time. Heating oil is higher. RBOB gasoline is trading higher. Natural gas is trading lower. Brent April crude oil is trading slightly higher at $102.28 after trading $103.30 yesterday morning at this time and set new highs of $104.30 per barrel on Monday. Europe's gas oil futures are trading lower. The WTI-Brent crude oil spread remains strong and $17.62 in favor of Brent crude oil to the WTI crude valuation. Historically, Brent crude oil is within $2.00 per barrel in value of WTI crude oil price.

Support for today's energy market comes from the protest and violent clashes in Iran, Libya, Bahrain, and Yemen. In addition, a weaker dollar is supporting this market. Today is inventory day and the API a somewhat neutral report yesterday afternoon, but with a surprising drop of crude oil inventories. Yesterday's trade was supported by the spreading of Egyptian like protests to other countries. Eventually, the trade broke lower. MasterCard numbers indicate possible decline in gasoline consumptions as retail gasoline prices climb. They indicate gasoline demand dropped 3% last week. Retail Sales and Business Inventory economic reports indicate our economy is still struggling. A much tight food supply in 2011 along with food inflation concerns has many countries buying ahead to insure food supplies. The fight for democracy is as much about the freedom to eat better.