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Macro Pulse highlights recent activity and events expected to affect the U.S. economy over the next 24 months. While the review is of the entire U.S. economy its particular focus is on developments affecting the Forest Products industry. Everyone with a stake in any level of the sector can benefit from
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Monday, July 8, 2013

June 2013 Monthly Average Crude Oil Price

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The monthly average U.S.-dollar price of West Texas Intermediate (WTI) crude oil retreated in June from the price “ceiling” of roughly $95 per barrel that has been in place since September 2012, falling by $1.00 (1.1 percent) to $93.80 per barrel. That price decrease coincided with a modest strengthening of the dollar, the lagged impacts of still-tepid consumption levels -- including a rise of 77 thousand barrels per day (BPD) to 18.6 million BPD in April, and a falloff in crude stocks.
The monthly average price spread between Brent crude (the predominant grade used in Europe) and WTI shrank in May by nearly 24 percent, to $7.76 per barrel -- the smallest differential since January 2011. Brent and WTI prices were essentially identical until the end of 2010.
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We intend to resume providing commentary in August. In the meantime, however, we observe that geopolitical tensions have apparently pushed futures prices higher during the past month.
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The foregoing comments represent the general economic views and analysis of Delphi Advisors, and are provided solely for the purpose of information, instruction and discourse. They do not constitute a solicitation or recommendation regarding any investment.

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