The oil market is all dressed up but has nowhere to go. Oil, that has a huge Iranian/Syria/ or country of your choice war premium built in, seems that until something happens will insist in trading in a range! Crude is giving back some of Friday's gains and seems to act like it has a destination, but with nowhere to go.
Mario Monte is warning that Spain could be the next phase of the European debt crisis. The Trilby Lundberg says that it is possible that gas is topping out at the pump and I agree, assuming that is that there is no war. Natural gas continues to flounder in a sea of fracking supply. Yet in Poland it seems that fracking is not going as well. Hard rock and low returns seem to suggest that Poland is going to be left out of the fracking boom.
The AP is reporting, "Diplomats say Iran and six world powers have agreed to meet April 13 for a new try at finding common ground on Tehran's nuclear program .But they tell The Associated Press that sensibilities generated by failed previous rounds and disputes on what should be discussed are keeping them from finding a venue. They say the United States, Britain, France, Germany, Russia and China oppose Iran's choice of Istanbul because the last round of talks there 14 months ago ended in failure. They say Iran, in turn, rejects Vienna because it is home to the International Atomic Energy Agency, which is trying to probe allegations Tehran secretly worked on nuclear weapons. The diplomats said Monday other venues are still being discussed and the start of the talks is not in jeopardy. They demanded anonymity because their information is confidential."
According to the Lundberg Survey the average price for regular gasoline at rose 11.49 cents to $3.929 a gallon over the last two weeks. Lundberg told Bloomberg that refinery glitches caused some wholesale markets to jump. Also Lundberg points out we went to daylight savings that adds another hour for gas demand.
Can we see the Gulf Coast make a comeback? Foggy days and foggy nights have slowed gulf imports! We should see a bit of a rebound. Look for crude to be up 3.5 million barrels this week. Look for gas to be down 2.1 million barrels and distillates up 1 million barrels. Refinery runs should drop 0.5.