Oil watches as Iran deal fails, products look for bottom

Talks fail

Iran deal fails as France has second thoughts about giving Iran too much and getting nothing back in return. At the same time oil products, such as gasoline (NYMEX:RBZ13) and ultra-low sulfur diesel, look like they wants to bottom. The civil war in Libya is heating up and Brent Crude is firming despite the expectation that supply in the North Sea will rise. The feeling is that geo-political risk and rising demand expectations because of strong U.S. jobs data and a surprisingly strong Chinese industrial production.

Consumer confidence was down despite a big drop in gas prices and a surge in demand.  Reuters reports that the average price for a gallon of gasoline in the United States fell in the last three weeks in sync with a drop in crude oil prices, according to the Lundberg survey released on Sunday. Gasoline prices have been decreasing steadily since early September. They fell 14.57 cents per gallon over the past three weeks, bringing the average cost to about $3.22 on Nov 8. That was 32.83 cents lower than a year earlier, based on a survey of some 2,500 retail stations in the 48 contiguous states. "Crude oil is the essential cause of this lower price," survey editor Trilby Lundberg said. San Francisco had the most expensive self-serve, regular gasoline in the survey period at $3.67 a gallon. Drivers in Tulsa, Oklahoma, paid $2.82, the least in the country.

Thanks to all the veterans!

About the Author
Phil Flynn

Senior energy analyst at The PRICE Futures Group and a Fox Business Network contributor. He is one of the world's leading market analysts, providing individual investors, professional traders, and institutions with up-to-the-minute investment and risk management insight into global petroleum, gasoline, and energy markets. His precise and timely forecasts have come to be in great demand by industry and media worldwide and his impressive career goes back almost three decades, gaining attention with his market calls and energetic personality as writer of The Energy Report. You can contact Phil by phone at (888) 264-5665 or by email at pflynn@pricegroup.com. Learn even more on our website at www.pricegroup.com.

 

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