The significant disconnect between crude and refined product New York Harbour trading values observed since the beginning of the year continues to create a situation where refined products prices are increasing within the context of falling crude prices. The situation oddly enough appears to be related to reduced overall demand, a condition which in itself should result in reduced prices. Within the New York Harbour market at the moment however, refiners in an attempt to unload surplus product are offering future months supply at discounted prices provided that the orders are taken possession of now. This presumably temporary condition has effectively taken a substantial portion of surplus product off of the market creating at the same time an upward pressure on current market prices. This market contango position as it is referred to by industry officials should be of temporary duration but while it lasts refined product prices will track distinctly different from crude prices.

• The U.S. Labor Dept reported that the U.S. economy lost 524,000 jobs in December and 2.6 million jobs for all of 2008. The nation's unemployment rate jumped to 7.2%, the highest since 1993.
• The Detroit Three automakers have announced extended holiday shutdowns. Chrysler has said it is closing all 30 of its North American manufacturing plants for four weeks because of slumping sales; Ford will shut 10 North American assembly plants for an extra week in January and General Motors will temporarily close 20 factories to cut vehicle production.
• This past Friday, KB Home, one of the nation's largest homebuilders, reported sales fell 56% in the fourth quarter compared with last year.