For crude oil prices - Friday the 13th could be a very scary day

Dateline:  Terry, Montana

November 13, 2009 9:00 AM MDT

By:  Bob van der Valk

The December WTI crude oil price is down almost a buck a barrel and is heading south somewhere towards the lower 70’s in the next few days.  This is the beginning of the end in the late season run-up for crude oil prices.  West Coast spot market pipeline prices are down 4 cents for gasoline and 5 cents for diesel as well.

The gyrations in crude oil prices are being exacerbated by speculators in the financial investment community.  Next week will tell if this is another head fake being perpetrated by hedge funds to rake in some more big profits to bump their 4^th quarter

profit picture.

The weakness in the price for crude oil is usually attributed to a strong US dollar.  Not so, this time around and the usual pundits are puzzled by this revolting development.  Data released today showed the U.S. trade deficit was more than expected to $36.5 billion in September 2009 while imports were up.

Crude oil was down to at $76 a barrel as a follow up to an already disastrous day yesterday.  A very bearish Department of Energy report along with strength in the U.S. dollar as well weakness in the stock market had crude oil giving up $2 a barrel.

But today will be just like any other day in the market with different factions working within the system to “Save the Tiger” just one more day.

Companies will be making their usual reports and announce cost cuts, acquisitions or corporate restructures to show that they are heading into the weekend having their collective acts together. 

Friday the 13^th could be a good omen for the consumers with gasoline prices at the pump starting their expected holiday downturn.

Bob van der Valk is the Fuel-pricing Analyst with 4Refuel Inc. in Lynnwood, Washington and can be contacted at (425) 216-9072 or by email at bvan@4refuel.com and web site:  www.4refuel.com

Bob’s web site address:  www.4vqp.com/ourconsultants/thegasguy.html

Any views expressed in this newsletter are those of the writer, except where the writer specifically states them to be the views of the 4Refuel group of companies.