Sep

18

Oil, from Jeff Rollert

September 18, 2007 |

The difference between the current spot price for crude oil, and the moving average for one-month and three-month contracts is really wide. Crack spread is also out of whack. I would suggest that we may see a snap back post Fed on spot oil, with no change in gasoline prices. Or the next few weeks are going to get back in line with products moving up and/or spot coming down. Gas is already back up to $3 for regular in CA, after being 2.65 a week ago.

Gordon Haave remarks:

Large crack spreads are good for the producers, such as Devon, that also own midstream assets.


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