Did you think that we were going to get any kind of break from the high per-barrel prices of crude just because of yesterday's nearly $2 drop? Think again, my friend; black gold has rallied nearly $3 thanks to weakness in the dollar combined with expectations for a drop in crude inventories when the government reports stockpiles tomorrow. The front-month crude contract rallied to hit a new record high of $97 per barrel. Phil Flynn from Alaron Trading told MarketWatch, this volatility is enough to give you vertigo.
Analysts expect to see a drop of 1.6 million barrels of crude during the past week. Gasoline stockpiles are expected to have added 200,000 barrels and distillates are expected to fall 800,000 barrels. The question is, if we get information reflecting an increase (or not as great a decrease) in crude supplies, will we see the price of crude start to fall? Maybe I should just go home and create a tin-foil hat, but it seems that the only constant with gas and crude prices is continued elevations. I must get off my soapbox, I have to get back to work so I can afford my $5-per-gallon gas next week.