Keeping an eye on WTI Crude has been quite amusing these past few weeks. Just this morning, with a tick of $33.89, crude hit a low not seen since 2004. What else happened 11 years ago?
- On March 30th, 2004 the average price of a gallon of gas hit a record high of $1.753. However, that mark was shattered when an average of $4.11/gallon was set in August of 2008. (Today’s national average is $1.9970)
- George Bush defeated the Democratic Party candidate, Senator John Kerry, to be reelected for his 2nd term as President.
- The ‘Curse of the Bambino” ended with the Boston Red Sox winning the World Series, putting an end to an 86-year superstition.
- The social network platform “Facebook” launched, which today is worth upwards of $300 Billion.
In petroleum news, heating oil and RBOB futures also headed lower this morning. Heating oil is trading down $0.0106 and RBOB is down $0.0512 at the start of this short holiday week. Today is the last day for January contracts, however, so WTI, along with heating oil and RBOB will get a boost from the market being in contango, being that February contracts are trading higher. December may have been an interesting time to monitor the price of crude, but 2016 could be even more volatile. With a 40-year ban on U.S. oil exports ending, coupled with the largest crude oil and natural gas storage glut ever seen domestically, the New Year could bring in new challenges.