Central Valley Cooperative

Energy - mixed with WTI higher, products and Brent lower - Libyan news and tropical storms dominate the stories. The Libyan Rebels gaining control of Tripoli is the most major news this weekend and today. Brent crude oil has been hit the most and the spread between WTI and Brent is narrowing. In addition, since the Libyan crude oil is very rich in gasoline making properties, gasoline has been pressured the most of the products. Disappointing economic news both in Europe and the U.S. remains the key to the energy markets. In addition, we have a significant increase in tropical storm activity with Hurricane Irene threatening Florida this week. We have had two days of protests of the proposed 1,700 mile pipeline to bring Canadian crude oil to U.S. markets. The potential and likely changing of the guard in Libya should quickly bring the valuable Libyan crude oil onto the market. This is a high quality crude oil that easily makes gasoline. This is the reason for Brent crude oil valuation is falling and NYMEX gasoline futures are trading lower. More oil on the market will likely add a further bearish feel to this energy complex.