Relative stability in crude prices observed over the past two weeks as increased Russian/Ukrainian geo-political tensions have been largely offset by the resumption of crude exports from Libya.  Domestically, the impact of the fall in the U.S. dollar has been mitigated by continued increases in North American crude production and inventory build.

Wholesale rack pricing of refined product and gasoline in particular have risen dramatically over this same two week period.  Prolonged unseasonably cold weather resulted in a delay of the traditional spring changeover on the part of North American refineries from high distillate production patterns to high gasoline yields.  This served to pressure spring gasoline inventory levels.  Additionally, the diversion of Atlantic Coast bound gasoline cargoes to Southern U.S. markets due to Gulf of Mexico production and supply distribution issues increased YOY ethanol costs and the fall in the value of the Canadian dollar further pressured Atlantic Coast rack pricing.  It is hoped that increased domestic refinery production coupled with the imminent arrival of water borne European refined product cargoes will serve to ease current market pressures.