The strengthening US dollar helped to bring crude and refined products below support levels last week. Gas futures led the way by breaking $1.90. Crude followed gas future's lead by closing the week under $68.
The US dollar is being buoyed by a combination of continuing loss of jobs in the US and speculation the European Central Bank will be forced to lower interest rates to boost a very weak European economy. It is a short term flight to quality, that will likely see the euro back in demand by beginning of next year.
Gas prices historically tend to drift lower after the 4th of July weekend's peak driving season. The probability of the lower trend continuing is strengthened by weak demand for gas and diesel. However, stay tuned to the weather forecasts. It only takes one major hurricane in the gulf to swing the market.
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