Views on commodities and energy
Commodities Roundup: Solar rally, ‘dismal’ picture of fuel demand
U.S. crude futures are holding near $108 a barrel, as U.S. data shows that refinery utilization dropped to the lowest on record last week in the wake of Hurricane Ike. Crude stocks dipped by less than expected thanks to the lower demand from refineries.
“The EIA data shows you that demand looks abysmal. The crude import numbers are surprising. Going forward, I see inventories rising,” said Kyle Cooper, director of research at IAF Advisors.
Elsewhere, solar power stocks are rallying after the U.S. Senate voted to extend tax credits worth $18 billion for renewable energy sources. Also, Energy Sec. Bodman is slated to speak at GridWeek Conference in DC.
Tuesday, Venezuelan President Hugo Chavez (pictured) paid tribute to China’s autocratic late leader Mao Zedong minutes after stepping onto Chinese soil, and said he hoped to build a joint tanker fleet and nearly double oil exports to the world’s number two consumer next year.