Consumers Getting A Gift At The Pump
Today’s Spotlight Market
Retail Gasoline prices fell to their lowest level in more than 5 years amid the plunge in Crude Oil prices.? This can be seen as good news for consumers, who may have a bit more to spend for the holiday and post-holiday shopping seasons. Coupled with the improvement in the labor market, the US economy has a chance to make some real progress in the early part of 2015.
Fundamentals
The dramatic fall in Crude Oil prices has been the main driver of the decline in the RBOB contract.? U.S. Oil output rose to 9.14 million barrels a day in the week ended Dec. 12th. This is the highest weekly output since 1983, according to EIA data. Improvements to driving methods, as well as the use of shale Oil, have led to a whopping 65% increase in US output in the past 5 years.? On the political front, the energy markets may gain a bit of support from the fighting in Libya, which has spread to the country?s fourth largest Oil port.? There has been no damage to the facility at this point, but the threat remains.
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