This week’s Market Update is posted at Alpha Baskets and includes the following;
West Texas Intermediate Crude moved up 2.73% last week to $41.71 (there was a change in the front month to January). This has translated to gas at the pump being less than $2 for many parts of the country which while a positive for plenty of people is a deflationary influence on the economy and not necessarily welcome news for the roughly 10 million energy sector workers in the country (as of 2011). Some of the decline has come from creative destruction (shale formations) but so too has some of the decline come from supply growing faster than demand. This week’s Barron’s Commodity Corner column discussed the extent to which oil sitting in tankers.
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