Crude prices fluctuated widely this past two weeks as global economic issues, European strike related refinery shut downs and the up and down value of the U.S. dollar influenced commodity prices in general. The apparent resolution of the Greek economic crisis early in the period served to reduce the value of the U.S. dollar and led in turn to escalated crude trading values. The subsequent impact of Total Inc.'s labour difficulties which resulted in the shut down of a number of European refineries served to stabilize pricing only to have actions on the part of the U.S. Federal Reserve in announcing continued interest rate stabilization for the near future serve to lower the value of the dollar and increase the trading value of crude futures. Finally, renewed concerns over the health of Greece's economy coupled with the impact of DOE reported increased inventories served to lower crude prices. Refined product prices were also influenced by the French strike in that refined product cargoes normally bound for New York Harbour distribution were diverted to other European destinations. In addition, continued ethanol production shortages in Brazil claimed a number of additional surplus market shipments.

Refinery  Yield:  79.6%
Demand:  See Below.

• MasterCard advised that in mid February retail gasoline demand was down 2.9% vs last year.
• API reported that U.S. distillate deliveries in January fell 12.2% compared to previous year's levels.
• Platts reports that demand for propane and propylene was up 13.1% year over year, a sign that demand for petrochemicals has improved.

Channel News Asia reports "The New York market rose in tandem with Wall Street stocks after comments by Federal Reserve chairman Ben Bernanke helped weaken the dollar, making dollar-priced oil less expensive for buyers using stronger currencies. Bernanke, in his semiannual report to Congress, signaled the U.S. central bank would need to keep its key federal funds rate at a historic low near zero for an extended period because of the fragile recovery from recession. The Federal chairman told the House of Representatives Financial Services Committee that he saw unemployment remaining stubbornly high which will require the Fed to maintain its stimulative monetary policy."

In its monthly oil report for February, the London based Centre for Global Energy said "Global oil demand is growing again driven by apparent surging demand in China and boosted by a protracted and widespread spell of cold weather across much of the Northern Hemisphere. The outlook remains far from certain, the report said, as the cold weather is unlikely to last much beyond the current quarter and there is little sign of underlying growth in OECD demand. It noted that China's crude oil demand has been encouraged by a massive government economic stimulus, guaranteed refining margins and spending on infrastructure, but Asian product surpluses are also appearing and moving into the Atlantic Basin depressing refining margins and reducing runs there. Even though new pipelines, refineries and storage facilities will all require oil to fill them over the course of 2010, sustainability of the high Chinese growth rates will ultimately depend on a revival in its exports which will require economic recovery in its key markets."