Can Refiners Meet Diesel Demand?
The USDA found a case of Mad Cow
disease on Friday, but the USDA secretary said the animal never
entered the food or feed supply. Cattle prices fell to the lowest level n
more than a year. Late in 2003, cattle prices fell 19% in five sessions when the
first case of Mad Cow in the U.S. was discovered. McDonald’s fell 1.3%.
The dollar is at a 9-month high vs the euro; traders are wondering
what affect that will have on Q2 profits.
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Crude oil rose $2 on concern refiners wont be able to
meet diesel and heating oil demand.
Oil prices surged to a 7-week high.Â
Rick Mueller of Energy Security Analysts says “Outside the U.S.,
diesel is becoming the fuel of choice. World demand for distillate fuel is
growing faster than that for gasoline.” For the past four weeks, demand
for diesel has running 6% higher than last year. OPEC meets on Wednesday and
despite pumping above formal quotas, is signaling a further production hike.
G-8 members will write off $40 billion of debt owed by
18 African countries.
Tropical Storm Arlene caused no major damage to oil and
gas rigs after passing through the Gulf of Mexico over the weekend.