ENERGY OUTLOOK:

THE TALK OF THE MARKET CONTINUES TO BE HURRICANE SANDY AND THE POTENTIAL
IMPACT IT WILL HAVE ON PETROLEUM SUPPLY AND DEMAND OVER THE COMING DAYS AND
WEEKS. YESTERDAY SAW HIGHER PRICES FROM RBOB AND HO WHILE THIS MORNING’S
PRICE ACTION IS MODESTLY WEAKER FOR REFINED PRODUCTS. DEMAND DESTRUCTION
LOOKS TO BE ENGULFING THE MARKET NOW AS TRADERS VIEW THE LACK OF PUBLIC
TRANSPORTATION, AIRLINE FLIGHTS, AND GENERAL DRIVING IN THE NORTHEAST U.S. AS THE
MAIN STORY OF THE MOMENT. THOUGH TIGHT SUPPLIES ARE EXPECTED (ESPECIALLY IF
REFINERY DAMAGE ASSESSMENTS COME IN NEGATIVE), THE MARKET IS ALL ABOUT THE
LOSS OF DEMAND RIGHT NOW BUT THIS CAN CHANGE IN AN INSTANT CONSIDERING HOW
VOLATILE HURRICANE TRADING CAN BE. PLEASE NOTE THAT VOLUMES WILL AGAIN BE THIN
TODAY AS THE FINANCIAL DISTRICT WILL AGAIN BE SHUT DOWN. THOUGH ELECTRONIC
TRADING IS OPEN, MANY TRADERS WILL SIMPLY NOT HAVE THE SAME ACCESS AS NORMAL
CONSIDERING THE POWER OUTAGES AND FLAT DISASTER-LIKE CONDITIONS CURRENTLY IN THE
NE. GOOD LUCK TO THOSE BEING AFFECTED BY THIS STORM AND EVERYONE IN THE U.S.
IS PULLING FOR YOU.

BASIS COMMENTARY:

GULF COAST GASOLINE CASH MARKETS WERE SEEN TRADING SLIGHTLY LOWER YESTERDAY
AMID A THIN TRADING MARKET TO START A NEW COLONIAL PIPELINE CYCLE AS TRADERS
LOOK TO SEE WHAT THE OVERALL IMPACT HURRICANE SANDY WILL BE ON DEMAND FOR
PRODUCT IN THE NORTHEAST. FOR NOW WE CAN ANTICIPATE A LOSS OF DEMAND FOR
PRODUCTS IN THE NORTHEAST BUT HOW LONG AND HOW MUCH IS STILL ON THE TABLE.
GULF COAST DISTILLATE CASH DIFFERENTIALS WERE SEEN HAVING A SIMILAR STYLE OF
DEMAND DESTRUCTION YESTERDAY DUE TO THE EFFECTS OF HURRICANE SANDY; WE WILL
MONITOR THIS SITUATION CLOSELY AS THE CLEAN-UP FROM THE STORM SHOULD BEGIN
SOMETIME LATER THIS WEEK AND HELP TO PICK BACK UP DEMAND. MIDWEST GASOLINE
AND DISTILLATE MARKETS WERE SEEN TRADING MIXED YESTERDAY AS EVERYTHING
REMAINS IN WORKING ORDER FOR THIS REGION OF THE COUNTRY. THE DOE REPORT HAS
BEEN DELAYED UNTIL THURSDAY AND THERE HAS BEEN NO CONFIRMATION AS OF RIGHT
NOW AS TO THE API REPORT BEING RELEASED LATER TODAY OR TOMORROW. WE WILL
KEEP UPDATES ON THE INVENTORY REPORTS AND WHEN THEY SHOULD BE EXPECTED TO BE
RELEASED AS STORM ASSESSMENTS CONTINUE.

INTL FCSTONE ENERGY GROUP
* * *
U Y A R I

BURADA YER ALAN YATIRIM BILGI, YORUM VE TAVSIYELERI YATIRIM DANISMANLIGI
KAPSAMINDA DEGILDIR. YATIRIM DANISMANLIGI HIZMETI SERMAYE PIYASASI KURULU
TARAFINDAN YAYIMLANAN SERI:V, NO:52 SAYILI `YATIRIM DANISMANLIGI FAALIYETINE
VE BU FAALIYETTE BULUNACAK KURUMLARA ILISKIN ESASLAR HAKKINDA TEBLIG`
CERCEVESINDE ARACI KURUMLAR, PORTFOY YONETIM SIRKETLERI, MEVDUAT KABUL
ETMEYEN BANKALAR ILE MUSTERI ARASINDA IMZALANACAK YATIRIM DANISMANLIGI
SOZLESMESI CERCEVESINDE SUNULMAKTADIR. BURADA ULASILAN SONUCLAR TERCIH
EDILEN HESAPLAMA YONTEMI VE/VEYA YORUM VE TAVSIYEDE BULUNANLARIN KISISEL
GORUSLERINE DAYANMAKTA OLUP, MALI DURUMUNUZ ILE RISK VE GETIRI
TERCIHLERINIZE UYGUN OLMAYABILECEGINDEN SADECE BURADA YER ALAN BILGILERE
DAYANILARAK YATIRIM KARARI VERILMESI SAGLIKLI SONUCLAR DOGURMAYABILIR.

-MATRIKS-